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Improving procurement delivers savings at government business

Read how Third Horizon helped transform procurement at a highly regulated government business enterprise with a new framework that generated immediate and long-term savings...

Background
A major restructure left a large, highly regulated Government Business Enterprise facing numerous improvement initiatives. The procurement team needed help to both generate immediate savings on its $250m spend - and create additional organisational improvements to extract greater savings and improved managerial control.

Our Role
The CFO engaged Third Horizon to work in partnership with the new procurement team. The task? To develop a robust implementation plan that would deliver hard savings in six months, with a procurement framework that would enable ongoing savings and efficiencies and improve penetration across business units.

Our approach began with an analysis to determine the current status of the projects and the savings the new team had achieved to date.

Then we prioritised the opportunities, determined specific activities and performance outcomes for each team member, mapped interdependencies and designed a procurement function that would capture savings quickly and efficiently.

We focused the team around a few key streams tailored to their requirements and resources – savings opportunities, governance requirements and enabling processes and technologies.

Results
The implementation planning gave our client a Centre of Excellence (COE) procurement structure that centralised functions and optimised management of the procurement team. Our procurement framework incorporated detailed activities, milestones and responsibilities for each team member.

We established a protocol for the team to interface across the organization and a platform that would enable ongoing savings and efficiencies long after our engagement finished.

Additional information