Moving up the value chain: transforming procurement at Elm
Moving from a transactional focus to a strategic one is a major challenge for many procurement teams. Efficio helped transform Elm’s procurement function into a strategic partner, while adding significant and rapid value to the business.
Saudi Arabia’s leading IT outsourcing and consultancy provider, Elm, engaged Efficio to drive greater strategic value from its procurement function.
Efficio developed a new, best-practice operating model and undertook a comprehensive training and mentoring program to transfer skills and knowledge to the existing procurement team, working closely with Elm staff to identify and deliver major strategic sourcing initiatives.
- Improve speed and efficiency;
- Improve the skills, knowledge and capabilities of the existing team, and;
- Enable continuous improvement through better governance and performance measures.
We were looking for a step change in the ability of our procurement function to add value to our business. Efficio had the knowledge, expertise and resources we needed. They helped us win the confidence and support of the wider business - a critical factor in the success of our transformation.
- Mapping of existing processes
- Extensive stakeholder interviews
- Detailed reviews of relevant documents, e.g. policies, process manuals, authority matrix etc.
- Analysis and benchmarking of organizational structure, roles and responsibilities.
The project delivered immediate and tangible benefits. The strategic sourcing workstream delivered cost reductions far in excess of initial targets, saving SAR46m (US$12m), or around 9% of addressable spend.
The new operating model also delivered improvements to procurement efficiency, including a 40% reduction in average sourcing lead times, freeing up time and resources to focus on value-adding strategic activities.
As well as these immediate gains, the project has transformed Elm’s procurement capability and created a platform for continued improvements in the future.
A new, dynamic procurement planning approach (developed as part of the project) has enabled Elm to build an increasingly accurate forward demand plan. The new, best-practice operating model remains in place and has been adopted and endorsed by the wider business – a testament to the success of Efficio’s focus on training and change management.
Most importantly, the Elm procurement team now has the skills, expertise, resources and tools to deliver real and sustainable value for the business.