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Case Study

SUPPLY CHAIN RESILIENCE

The Challenge

A global manufacturing and supply chain solutions company faced significant challenges in maintaining its materials supply at competitive prices during the pandemic crisis and through shipping channel instability. At the same time, rapidly changing market conditions and increased global competition posed growing threats to the company’s market position. Incoming leadership set ambitious revenue and cost saving targets for the company, goals that required a fundamental shift in their market approach and procurement organizational setup.

Opportunity Assessment 

An opportunity assessment was conducted to evaluate the current regional procurement organizational structure, governance, leadership capabilities, and culture. The goal was to determine the maturity of the overall procurement organization and identify areas to enhance procurement to support the global company’s growth and cost saving goals.

What We Discovered  

The assessment revealed a high-risk supply base, underdeveloped structures and governance, challenges with data transparency, and unproductive organizational culture. There was both an opportunity and need for procurement to transform from a siloed regional model to an integrated global organization leveraging synergies and providing strategic value to the business. Ensuring procurement had both the leadership capabilities and operating behaviors to support the next phase of growth was critical to the process.

What Conscient Strategies Did

With these potential risks and gaps identified, we partnered with procurement leadership to design and implement the global procurement organization of the future. Leveraging a collaborative, cross-functional approach, we worked with all levels of the organization across the globe to:
          1. Shape a new procurement vision and global mandate          

          2. Establish the new global procurement leadership team

          3. Align leadership priorities and organizational KPIs

          4. Design the global organizational structure

          5. Create a new operating model

          6. Update governance, roles, and global responsibilities

          7. Implement the new organization

At each stage of the process, this procurement transformation was linked to material cost optimization priorities and board-level strategic initiatives to ensure organizational changes continued to accelerate and reinforce business results.

Results

The new organization was implemented quickly with an agile and iterative approach, providing fast cost-saving results and quick wins. Throughout the change process, procurement leadership continued to deliver results, meeting or exceeding all their KPIs while transforming.
The new global procurement organization and operating model unlocked global synergies and increased regional agility, positioning procurement to capture hundreds of millions in savings and support the business’ future growth objectives.
Today, the updated governance structure drives effective decision making leading to better and faster decisions, and optimized resource utilization. Procurement operates as a strategic partner and key contributor to the business, proactively building a resilient supply base and strategic sourcing footprint designed to deliver savings and mitigate supply chain risk.

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