Challenge

•Client acquired many steel related businesses across mainland Europe

•Low visibility on how €500M of indirect spend was spent and prioritised

•Procurement organisation was fragmented with low visibility of spend at a central, regional and local levels, aggravated by varying software per site from SAP to Excel

Approach

•Cleansed and analysed €500M spend data from 26 business sites across Europe using UNSPC taxonomy

•Built a spend cube to visualise the spend data

•Interviewed procurement team members on spend challenges

•Built a revised Procurement operating model and approach to identify suitable candidates to lead and be part of the Mainland Europe coordinated Procurement commodity team

Results

•Identified quick win savings of €38M, and longer-term opportunities e.g. supplier rebates and reduction of spend tail

•Worked with client teams to capture the identified quick win savings

•Delivered full visibility of spend across the 26 sites at a regional and site level

•Created a blueprint for a coordinated commodity team including: team structure, roles and responsibilities, potential union issues and impact assessment