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Situation:
Decentralised Purchasing activity, 3rd party non-manufacturing spend USD250mm
1998, PMMS Benchmarking identified lack of purchasing knowledge/ competency. Uncoordinated activity (sales, IT, Retail, manufacturing all acting independently)
Own in-house team too slow in delivering desired cost-reduction benefits
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Approach & Results
Sept 98, 2man PMMS team joined in-company team to accelerate benefit delivery
Measured savings USD10mm resulted
In late 2000, PMMS engaged to take over and manage all procurement including managing in-house 8 member team
Benefits on track at >6:1 benefit::cost
PMMS role further extended to evaluate the company's e-procurement strategy and improved use of the company's SAP/R3 Purchasing module.
Note: benefits claims require independent validation and sign off by both the business unit concerned and the CFO
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