Solution
- Standartized RFQ to P2P process (Procure to pay)
- Introduced some goal specific digital solutions
- Changed responsibilities from one makes all to roles based procurement
- Order management consolidation and re-arrangement
- Improved capacity for RFQ - 4 times, improved capacity for P2P process - 6 times. Everything with same amount of people in procurement department
Unveiling the Bottleneck
In the realm of contract manufacturing, our client found itself grappling with an evolving procurement department. The reliance on a single procurement manager to handle everything from RFQ to P2P was hindering their growth.
The Crossroad of Choices
As we delved deeper into the company's operations, it became evident that the absence of standardized procedures presented a critical crossroad. The options were clear: either hire additional personnel in procurement or embark on a transformative journey of standardization and optimization. We presented our recommendations to split responsibilities and introduce standardized procedures, paving the way for enhanced efficiency and scalability.
Reimagining the Workflow
Reorganizing the present workflow was the first crucial step toward unlocking the company's full potential. By implementing our recommended changes and embracing standardized procedures, the procurement department witnessed a remarkable transformation. The capacity of the department soared twofold, creating room for increased productivity and improved resource allocation.
Stepping Two Leaps Ahead
To solidify the company's position as a true industry leader, we ventured further, taking two bold steps forward.
Step 1: Embracing Digital Solutions for RFQ Standardization
We facilitated the identification and selection of an innovative RFQ process digital solution. This tool served as the foundation for standardizing internal procedures, streamlining commercial offer preparation, and revolutionizing the capacity of each bid manager. The result? A quantum leap in efficiency and a significant increase in the number of RFQs that could be seamlessly managed by a single bid manager.
Step 2: Unleashing the Power of Order Consolidation
Recognizing the untapped potential within order management, we introduced the concept of consolidation. Through a crafted two-year plan, we embarked on a journey of step-by-step order consolidation and digitalization. This strategic approach revolutionized the management of orders, resulting in a staggering sixfold increase in the procurement department's capacity. The newfound efficiency allowed the company to operate at an unprecedented scale, delivering exceptional results to their clients.
By breaking free from the constraints of a single procurement manager and embracing standardized procedures, the company experienced a transformative journey of growth, efficiency.
