global procurement representative case studies 8m eur (10%+ savings) through strategic sourcing...
TRANSCRIPT
Table of Contents
Page Client / Industry Region Delivered Project Type
3 Best Buy North America Source-to-Pay (S2P) Transformation
5 Aetna North America Strategic Sourcing
7 Kraft Foods North America BPO/Strategic Sourcing/Category
Management
9 Oil & Gas North America Strategic Sourcing
11 Energy France Purchasing Excellence
13 Manufacturing France Global Procurement Solution
15 Insurance France Procurement Optimization
17 Aerospace France Design-to-Cost Integration
19 Building Materials France Strategic Sourcing
21 Financial Services France Strategic Procurement Transformation
23 SCA Sweden Savings Control Tower
25 Government Sweden Spend Analysis & Category Management
Strategy
Identified Savings of $161 to $254M through Source-to-Pay (S2P) Transformation
Best Buy is in the middle of a
transformation – business, culture,
technologies, partnerships. They
are looking for a transformation
roadmap to enable Procurement to
achieve the next level of
performance.
Client Issues Compliance
Leakage is occurring throughout the S2P
function – procurement channels, preferred
suppliers and contract management
Procurement policies and procedures are
unclear and inconsistent
Process
Procurement processes and policies are
not consistently applied and/or not category
specific
Technology
Complicated IT landscape with ~70
procurement systems
Various business units, functions and
geographies have custom, home-grown S2P
systems
Capgemini Consulting Solution
We partnered with Best Buy to complete the
“Discovery Phase” of its Source-to-Pay
(S2P) transformation program centered on:
Transforming the procurement organization
and operating model
Developing clearly defined and consistent
processes incorporating LEAN techniques
and tools
Implement leading class S2P and T&E
technology and processes
Results / Value Delivered
1. End-to-End Compliance: Reduced leakage of realizing savings by purchasing through the
correct procurement channels, from the right vendor, at the contracted price and paying on the
agreed upon terms; effective contract life cycle management
2. Process Standardization: Standardized S2P and T&E processes across the enterprise
provides considerable, sustainable value
3. IT Rationalization: Reduced the size of the overall IT Landscape will reduce maintenance,
license, infrastructure and support related fees
Compliance Process IT
Reduction of savings leakage through non-compliance
Increase electronic invoices
ePayables Pay channel optimization
System decommissioning Support reduction
$96 – 170 M $57 – 73 M $8 – 11 M
$161 - $254 M Total Savings Identified
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experience
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Adrian Penka
404.285.9907
@A_Pen_ka
Matthew Shull
214.577.3216
@Matthew_Shull
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Identification of 8% aggregate savings across 15 categories and negotiated a
22% fee reduction from a sourcing event
Aetna, a leading US-based health
insurance payment company, had
embarked on an enterprise-wide
challenge to increase efficiencies
and improve care while lowering
total costs in preparation of the
passage of the United States health
care reform legislation
Capgemini Consulting Solution
Conducted a spend analysis and prioritized
categories by opportunity over a 12-week period
Developed 15 category knowledge packs
representing spend of$760M which included:
Spend Data Analysis
Analysis and benchmarking of the
external supply market
Identified and prioritized savings
opportunities
Developed recommended strategy and
execution plan
Executed a targeted sourcing event for
accelerated sourcing
Spearheaded a business process reengineering
initiative and shared knowledge on leading practices
Trained Procurement personnel on sourcing
methodology
Results / Value Delivered Identified up to 8% in aggregate savings across 15 categories
Negotiated a 22% fee reduction from the accelerated sourcing event
Initiated and led a business process reengineering effor that enabled Aetna to increase
supplier competition in a key spend area and is expected to produce long term benefits
Client Issues Aetna ‘s procurement organization was tasked with
achieving significant cost savings in a short
timeframe and engaged Capgemini Consulting to
conduct a sourcing opportunity assessment to
identify savings opportunities in its supply base and
help achieve their savings objectives
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experience
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Adrian Penka
404.285.9907
@A_Pen_ka
Matthew Shull
214.577.3216
@Matthew_Shull
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Assisted Kraft Foods in realizing significant savings (~$25M/yr) through Indirect
Procurement Outsourcing and a large portfolio of SCM initiatives
Capgemini Consulting engaged in
a procurement excellence program
focused on savings/cost reduction
programs to increase the bottom
line
Capgemini Consulting Solution
Outsource management of Indirect Spend for
non-core sourcing activities
“Re-Sourcing” major commodities following an
extensive spend analysis to identify opportunities
Reduced complexity in all areas of Supply Chain
Sourcing and Contracting
Sourcing and day-to-day category management of
68 commodities in 13 different categories
Operating Model transformation through the
creation of Category Councils and provided
recommendations to the BPO organization on
effective future operating model
Results / Value Delivered Contracted over $25M in annual cost savings during the first year through the strategic
sourcing initiative
Helped identify sourcing improvements across commodity segments
Drastically reduced overhead costs due to more simplified and unified vendor management
approach
Project led to an additional $10M in savings from rationalization during merger integration
activities
Client Issues Kraft had been paying above market rates for
goods and services due to lack of ability to
effectively use leverage in negotiations.
They were also maintaining an increased cost of
managing a large number of regional, national and
international vendors.
Kraft was missing opportunities to share leading
practices across the several business units.
Company leadership tasked the Supply Chain
group to significantly reduce costs across the
organization specifically for year on year savings
WAVE I
Category
Spend
(000's)
Savings
Potential
(000's)
Sourcing
Approach
Savings
Opportunity
Rating
Organizational
Alignment
Rating
IT Infrastructure & Services 35,000 5,600 SS/D 10 5
Office Supplies, Services & Equipment 7,500 1,360 C/SS/Q 9 8
Travel 59,000 4,130 C/SS/D 10 3
HR Services 98,000 9,650 C/SS/D 10 4
Other Business Services 5,000 550 C 9 5
Manufacturing Services 139,159 28,317 C/SS/D 10 9
Parts & Supplies 32,870 5,662 C/D 10 9
Auxiliary 20,000 3,400 Q 10 3
Construction 250,000 47,500 SS/D 10 5
Distribution / material handling equipment 28,700 4,018 SS/D 10 5
110,188$
Core Categories
Total Wave I Savings Opportunity
The team (is) delivering what was expected in terms of
new ideas and methods. The group has learned a lot from
team members. It is a pleasure working with the team.”
- Project Sponsor
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experience
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Adrian Penka
404.285.9907
@A_Pen_ka
Matthew Shull
214.577.3216
@Matthew_Shull
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Secured 8M EUR (10%+ savings) through strategic sourcing initiatives in the
indirect categories
Capgemini Consulting engaged in a
strategic sourcing engagement in
order to secure significant savings
in their indirect purchasing
categories
Capgemini Consulting Solution
Set up and implement a systematic strategic
sourcing approach of the categories through
Spend analysis
Category strategy
Preparation and launch of RFP
Negotiation strategy with suppliers,
including execution of negotiation
Set up frame agreements
Roll out and implementation management
Provided client with methodology support and
coaching to professionalize purchasing activities
through
Category Toolbox
Negotiation Kit including training
Support to spend management activities
Project Management
Results / Value Delivered Secured 8MEur, resulting in more than 10% savings on spend under management
Defined and validated category strategies within the corporate purchasing organization
Utilized buyers for operational involvement to support the implementation of the categories
Trained and handed over category knowledge packs for future negotiations and further
savings within the indirect procurement categories
Client Issues Client needed immediate reduction of cost
through strategic sourcing initiatives
Client had aggressive savings targets in year
over year savings
Client wanted to enhance their purchasing
organization to operate more efficiently specifically
in their indirect categories
Client wanted to increase the legitimacy of a
group purchasing organization within the group
BUs
A Global Oil & Gas
Leader
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experience
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Adrian Penka
404.285.9907
@A_Pen_ka
Matthew Shull
214.577.3216
@Matthew_Shull
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Capgemini Consulting engaged in a
lean approach focused on time
savings in purchasing process to
increase buyers high added values
activities
Client Issues Simplify the purchasing process while increasing
the added value ratio on buyers activities
Reduce the processing time by 20% when time
piloting is not in corporate culture
Capgemini Consulting Solution Lean / Six Sigma – DMAIC methodology:
Cartography of different process types
Statistical analysis of 6400 projects through
purchasing information system, statistical
treatment of 250 notes of market analysis
Diagnostic of current situation and identification of
potential levers through: 24 interviews, 450
questionnaires, 6 workshops (review of
processes, RACI, added value ratio calculation,
issues / accessibility)
Result analysis and synthesis to develop a
recommendation plan
Gantt design for transformation phase
Transformation roadmap for short, medium and
long term with operational action plan for the
short-term recommendations
Results / Value Delivered An opportunity to reduce of 30% the average time spend on purchasing process
Repositioned 45 FTEs on tasks with high added value: procurement strategies
development, negotiation, monitoring and analysis of market development (trends and
prices) experience feedback…
Identified time savings of 30% on current purchasing process to reallocate it to
high added values activities
A Global Leader
in Energy
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experienced
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Philippe Rémy
+33 6 31 21 93 67
Emmanuel Gavache
+33 6 07 16 98 34
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Capgemini Consulting engaged in a
strategic worldwide program
focused on improving client
competitiveness and reactivity
Client Issues To increase its competitiveness and reactivity, the
client’s board decided to launch a strategic global
program named “Enterprise Steering Tool”, a multi-
year, multi-region program mobilizing hundreds of
resources worldwide, followed at the top level of the
company on a weekly basis.
This program has three main objectives :
1. Better serve clients through an upgrade of
processes for the downstream domain
2. Align globally all processes on a core optimized
model, based on an Oracle solution
3. Improve the upstream supply chain by
implementing a PLM, deploying global
warehousing and planning solution.
Capgemini Consulting Solution Capgemini Consulting supported all parts of this
program including the program steering:
On the downstream component, we worked on
defining the future state and drove the global
architecture of the overall solution
On the Oracle solution built, we defined the
methodology and assisted the program PMO in
critical phases and activities
On the upstream supply chain, we defined the core
principles of the solution and were responsible of the
integration of the different sub-projects (especially
integration of external suppliers…)
At the program level, we took the responsibility to
assist the program director in the program steering
(PMO)
Results / Value Delivered This program is still on-going and as of now on time and on target. Feedback from CEO after
last Go Live in China is that this program ‘’constitutes a perfect benchmark of how a
project should be managed’’
Scope and level of change regarding current practices makes this program truly unique for
the client in term of size and level of ambition and rarely seen in other environments.
Assisted the client in increasing its competitiveness and reactivity towards its
clients thanks to a strategic steering tool including P2P
A Global Manufacturer
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experienced
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Philippe Rémy
+33 6 31 21 93 67
Emmanuel Gavache
+33 6 07 16 98 34
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
More than 200 M€ of spend covered by the solution
Capgemini helped the client to
manage expenditure
commitment and to optimize
procurement management
Client Issues Client needed to:
Improve spend control within the group
Standardize procurement practices (workflows, procurement,
purchasing, budget construction, invoices processing…)
Improve flows traceability (invoices …)
Increase spend coverage visibility throughout all departments
Monitor expenditure commitment
Capgemini Consulting Solution
A 4-steps project :
Redefine the target and analyze the tool solutions with
regards to the business priorities and budget constraints
Build the process of the targeted organizations and
analyze business impacts
Specify the targeted solution and prepare its deployment:
integrator response to the business need
Targeted solution deployment: change management
(training, communication)
Main project streams (general expenses perimeter):
Procurement classification redefinition
Procurement and financial processes design (including
invoices dematerialization)
Client support in related arbitration
Results / Value Delivered
More than € 200M of spend covered by the solution
Consolidated spend visibility
Flows and processes optimization
Savings due to catalogs use
Better cooperation between Procurement, Purchasing and
Internal Client
A Global Leader
in Insurance
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experienced
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Philippe Rémy
+33 6 31 21 93 67
Emmanuel Gavache
+33 6 07 16 98 34
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Integration of a structured Design to Cost (DtC) approach in the whole program
cycle
The group launched an initiative to
enhance Design to Cost best
practices
Client Issues Through its efficiency plan on Technical
Research Development and Industrialization,
the client has three main objectives :
Support companies in their programs
through the distribution of DtC
methodological elements
Provide support to companies to improve
their maturity on DtC (matrix / action plan
/ toolbox ...)
Build a training plan on DtC (from
awareness on basics till experts modules)
Implement DtC projects within the group
Capgemini Consulting Solution
Work focused on three main streams:
DtC methodology
Training session
Support the DtC process roll out
Workshops gathering several Safran
function representatives (engineering,
purchasing, program, finance, …) to build
key elements of the approach
Monitoring of DtC methodology and tools
implementation
DtC single point of contact network set up
Results / Value Delivered
Strengthening the validation of program development milestones with criteria related to
cost (DtC guidelines)
Enrichment of procedures with DtC Group actions (7 procedures formalized)
Formalization of training modules (5 training modules, more than 100 trainees)
Construction of an appraisal matrix on companies DtC maturity with an associated
action plan (toolbox)
Key success factors
Involvement of participants from each company in order to integrate the specificities of
each business , and representatives of all function involved in the DtC approach
Enrichment of group development procedures (prescriptive) with milestone including
specific to cost criteria
Leverage on existing bodies :
Corporate University (for training)
Toolbox to disseminate elements approach
A Global Leader
in Aerospace
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experienced
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Philippe Rémy
+33 6 31 21 93 67
Jean-Pierre Pellé
+33 6 08 28 66 33
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Strategic sourcing initiatives for 12 categories
Capgemini Consulting engaged in a
successful methodology to help the
client to develop purchasing
strategies for 12 categories
Client Issues Launched a global program in 2012 in
order to increase its operating income by
2014
One of the main objectives of the
program was procurement costs
optimization in each country
Capgemini Consulting Solution
A first step of “Flash” diagnosis enabled the client
to identify and prioritize purchasing categories to
be addressed according savings potential
The second step aimed at analyzing each
category in detail to identify - with the categories
contributors support (purchasing, internal client, ..)
- the suitable action plan to put in place to achieve
the savings objectives
A benefit tracking tool has been implemented to
follow savings
Results / Value Delivered
Savings objectives identified with associated action plan for 12 purchasing categories
The project contributed to the skill improvement within the purchasing team, especially
thanks to the systematical investigation of all purchasing levers: buy less, buy better, buy
cheaper.
The collaboration between the purchasing team and the internal clients was enhanced
through the common definition – and then implementation- of the action plans
A 3 steps methodology
Detailed diagnosis for prioritized purchasing categories
Action plans deployment for each category
“Flash” Diagnosis
Top down analysis / Capgemini Consulting expertise
Holcim France purchasing practices analysis
Savings estimation
Bottom up / Focus interviews
Focus interviews with different actors to identify main purchasing levers: top management, purchasing officers and internal clients
Buy cheaper
Buy better Buy less
The detailed diagnosis relies on the 3 following levers :
Roadmap 3 …
Roadmap 2
Roadmap 1
Identification of the prioritized categories
A Global Leader
in Building Materials
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experienced
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Philippe Rémy
+33 6 31 21 93 67
Ludovic David
+33 6 76 70 32 76
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Empower the procurement organization through uniform processes
implementation, governance strengthening and sourcing methodology definition
Capgemini Consulting was involved
in the transformation of the client’s
Procurement Function in order to
improve its performance and
control risks
Client Issues
To ensure maximum effectiveness, the Procurement function needed to
gain acceptance from the branches and the business units of the group.
To achieve this, a collaborative purchasing culture was essential, even
if in some aspects this went against the more aggressive approach
often used in industry
As large banks count among the most complex types of organization,
properly taking into consideration these organisational issues was a key
success factor for the Procurement function
Chief Procurement Officer (CPO) mandated Capgemini Consulting with
the task of strengthening the central procurement organization, and
standardizing the processes, practices and rules of governance for
procurement throughout the Group
Capgemini Consulting Solution
To fulfill its mandate, Capgemini Consulting helped the client to:
Develop a three-year vision for the Group Procurement function, based
on seven core pillars: Vision, Strategy, Core Competencies,
Organizational Structure, Processes, Tools, and Style.
Define Procurement Norms and Standards for all purchases performed
within the group
Define a procedure for managing supplier risk
Design a procurement dashboard and a planning and monitoring
activity
Construct and implement sourcing strategies for key commodities
Assess Procurement maturity of subsidiaries and propose an action
plan to improve local performance
Results / Value Delivered
The Procurement function has gained recognition as a major contributor
to operational effectiveness
It has successfully managed to build strong links with business units and
has adapted its organization to the major stakes of the bank:
External cost optimization
Risk assessment and control
Transactional conformity
Moreover, the client is now able to coordinate procurement actions and
policies across all subsidiaries of the Group.
Example: supplier risk definition
A European Leader in
Global Banking and
Financial Services
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experienced
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Philippe Rémy
+33 6 31 21 93 67
Pascal Haubois
+33 6 85 29 70 43
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Implementation of a Savings Control Tower provided full control of a complex
global program and a savings realization exceeding the target
SCA had defined an ambitious
efficiency program with the goal to
realize ~300 MEUR in cost
reductions . Global Hygiene
Sourcing was expected to deliver
about half of the savings by
reducing costs for procured
materials and services
Client Issues
A diagnostics phase within procurement had
been completed, resulting in a detailed spend
cube, opportunity assessment, and +380 savings
initiatives identified and documented with
assigned owners
However, it was lacking a mechanism to govern
the savings program, handling the level of
complexity and securing target fulfillment
Capgemini Consulting Solution
Establishing a "Savings Control Tower"
comprising the following components:
A Program Office Organization
Standard PMO processes and governance
procedures: Savings tracking, Risk log, Action log,
Change log, Status meetings, etc.
An IT-tool , based on SharePoint technology and
configured to customer needs:
A common savings initiative charter
Captured all savings initiatives in the
charter
Built standard views and reports
100% tracking and updates done in tool
Relentless, action oriented approach in frequent
meetings with the sourcing initiative owners,
controllers and management across functions
Frequent reporting of program- and savings
delivery progress to senior management, focusing
on value and actions
Results / Value Delivered
Full control of a large and complex program with global scope
Complete, accurate view of consolidated savings delivery vs. the savings goal at any point
in time
Consolidated, high-level "Dashboard" view of Savings- and program status
Detailed view of the status of every single savings initiative
A new way-of-working with governance of sourcing projects implemented in the line
organization
With the current rate of savings realization the program will exceed the savings target
Incorporated and supported by technology
Governing
Organization
Processes Technology
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experience
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Michael Skordby
+46853684021
Anders Lundquist
+46853683007
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.
Spend analysis and strategy, group forums, and instructions for procurement
were developed for procurement resulting in 150 MSEK in secured savings
There is Pressure from the
government to lower costs without
lowering capabilities in the middle
of a SAP implementation to
establish better financial control
Client Issues
The central procurement organisation,
established early 2000, were reactive to
business demand which resulted in many
small, inefficient ,and overlapping
contracts with limited savings
Capgemini Consulting Solution
Delivered a spend analysis, a channel
strategy ,and 25 category strategies
Established/developed a group forum,
instruction, and scorecard for
procurement
worked in joint teams with the client
organization to ensure successful project
delivery and knowledge transfer.
Delivered with a diverse team, including
experienced professionals within
procurement, operating model and
performance management.
Results / Value Delivered
As of 2013, the project has delivered 150 MSEK in secured savings.
Internal resources to drive and deliver category strategies have been recruited, trained and
are fully operational today
Involved client resources have been trained on the methodology and are more skilled
procurement professionals today
Our Differentiators At Capgemini Consulting, we understand that
people are our greatest differentiator. We have
consistently delivered superior results to our
clients because our global procurement
transformation group is comprised of experience
and knowledgeable practitioners who know how
to provide key insights to problems and unlock
previously untapped value in the organization.
Global practice with thousands of practitioners
in over 40 countries possessing both deep
industry and consulting experience
Robust, client tested methodologies and tools
that can accelerate the S2P solution evaluation
and selection process
Strong partnerships with industry leading S2P
solution providers
Global research and delivery capabilities
Experienced team – from strategy to solution
deployment & support
Unique insights beyond just features and
functionality
Thought Leadership Capgemini Consulting offers unique thoughts and
insights about procurement. We share our
research and expertise through publications like
our CPO Survey and SRM Study. You can find
out more of our views on our regularly updated
Procurement Blog.
www.capgemini-
consulting.com/blog/procurement-
transformation-blog
Capgemini Consulting uses its
experience and knowledge to
provide key insights for clients
throughout all industries
Capgemini Consulting is the strategy and transformation
consulting brand of Capgemini Group. The information
contained in this document is proprietary.
© 2013 Capgemini. All rights reserved.
Contacts
Michael Skordby
+46853684021
Anders Lundquist
+46853683007
Capgemini Consulting is the global strategy and
transformation consulting organization of the
Capgemini Group, specializing in advising and
supporting enterprises in significant
transformation, from innovative strategy to
execution.
Find out more at:
www.capgemini-consulting.com
Learn More Capgemini Consulting offers existing and
potential clients the opportunity to discuss these
and other projects designed to deliver sustained
value.
We can also provide a view of how to drive
greater value with Digital Transformation
strategies in Procurement.