Our site uses cookies

I agree Our site saves small pieces of text information, called “cookies” on your device. Find out more in our cookie policy. You can disable the usage of cookies by changing the settings of your browser. By continuing to browse the site you are agreeing to our use of cookies.

10 steps to procurement excellence

How did KNect365 take its procurement performance from ‘basic’ to signing off £5.8m in annualized savings in just six months?

In 2015, Efficio rated KNect365’s procurement performance as ‘basic’ and placed it in the lower quartile of rankings. In order to journey from that baseline to world class by 2018 and beyond, it followed these 10 steps:

1. Strategy:

​Have a clear procurement strategy with a view on total spend, measurable future targets, adoption of category planning and strategic sourcing

2. Organisation:

Centre of Excellence for procurement to set up policy/guidance, lead procurement on indirects, with regional hubs to lead execution and monitor

3. People, skills and training:

Conduct a skills development and enhancement program in category planning, strategic sourcing and supplier relationship management (SRM)

4. Category planning: 

Adopt an annual planning process showing clear savings and value delivery plan

5. Strategic sourcing: 

Across all categories by cross-divisional/cross-functional teams with an enhanced and common methodology

6. Supplier relationship management: 

SRM methodology to be defined and implemented on categories and executed by cross-divisional or divisional teams (where the spend is specific to that division)

7. Measurement, reporting and tracking: 

Have in place a well-defined and agreed set of metrics and measures to track procurement performance and progress, including delivery of savings

8. Engagement and change management: 

Engage at a senior and strategic level to ensure optimized application of the strategic sourcing process

9. Process, policy and risk:

Jointly define processes and policies to govern procurement activities, risk management guidelines and mandatory requirements

10. Technology and insight:

Ensure the entire source-to-contract cycle is supported by technology and able to provide real-time, accurate spend and contract visibility, and proactive compliance

Procurement for the future

The strategy put in place by Efficio began to garner results almost immediately. The new team has already signed off £5.8m in annualised savings, identified significant future opportunities and established itself as a well-organised and professional procurement service exceeding all expectations.

Subscribe to The Source

The Source is Efficio's global client magazine, which aims to inform, engage and inspire CPOs and other senior decision-makers involved in procurement and supply chain optimisation. Sign up for free via the link below.

Subscribe
A recipe for success: Enabling accelerated growth at MEC3
Case study
A recipe for success: Enabling accelerated growth at MEC3

MEC3 had ambitious plans to grow its presence in the specialty ingredients market through new acquisitions.Efficio delivered immediate savings to support MEC3’s growth strategy – while transforming their entire approach to procurement.

The future of procurement training and learning
Insight
The future of procurement training and learning

Learning is recognized by industry leaders as the top method for retaining talent, so how can procurement leaders ensure effective training?

A story of soft skills in procurement
Insight
A story of soft skills in procurement

As the function transforms, new procurement skills are required for success. They may not be taught in traditional procurement training, but so-called soft skills are increasingly important to reposition and elevate procurement.

How to make an impact as new CPO
Insight
How to make an impact as new CPO

For any new CPO, it’s not just about the quick wins but the need to lay the foundations for longer-term goals.