Global bank: delivering a new procurement operating model

23 August 2023 — 1 min read

Financial Services

Procurement

Our client, a global bank, came to our procurement experts seeking an independent review of their challenges across procurement and supplier management operations, and innovative solutions to solve for these.

Outcome 1: Created and set-up a new procurement services team
Outcome 2: Delivered a new best-in-market procurement strategy business-wide
Outcome 3: Negotiated a new contract for outsourced P2P services

The challenge

Our client, a global bank, was facing multiple challenges within their procurement and supplier management operations functions. So, their Group COO contacted our procurement experts to undertake an initial 3-month review of the problems at hand. Our client was seeking independent expertise to assess their challenges and solve for these with innovative solutions.

Legacy technology and a low process maturity had resulted in challenges ranging from the need to drive greater value from the partners, to increasing the return on investment from procurement and reducing third-party spend and the cost of procurement operations as a whole. Further, our client was committed to aligning key stakeholders across the business and improving the role of procurement function as a whole.

The bank needed a new procurement operating model that could help them address the myriad of issues they faced, and our experts supported on just that, transforming their procurement function to deliver change quickly, but within a strict risk and compliance framework.

The approach

We began with in-depth analysis of our client’s procurement operations – this included spend analysis and benchmarking, process, technology and organization reviews, a procurement maturity assessment, contract analysis and interviews with key stakeholders. This insight enabled us to deliver an options assessment, detailed recommendations and a roadmap for the transformation.

Off the back of this initial work, our procurement experts were further engaged to put this strategy into action, at pace. Initially, we set about working with the teams to help solve some of the organizational issues they faced, enabling greater clarity and accountability, whilst also helping to deliver immediate tail-spend savings for our client. We delivered a full procurement function re-design and implementation, developing this against a new performance management framework. In addition, we developed a procurement and partner management handbook for all stakeholders – a guide to the new vision, strategy, processes and organization of the new procurement function.

Impact

Our work together has created a strong foundation to enter the next phase of transformation: this will involve technology-driven change. Our client now has a brand-new procurement services team, a new partner management team, a new contract for outsourced P2P services, a tail spend program underway and a new strategy for their procurement function to lead them into this next phase.