Value-oriented procurement transformation
Utilities & alternative energy, Operations management

Value-oriented procurement transformation

Transform procurement into a value-generating function


Challenge

Too-strong value generation performed by suppliers?


The oil & gas industry is characterized by high levels of outsourcing, in which a significant share of the value generation is performed by suppliers. Harsh market conditions pressured our client, a mid-sized integrated oil & gas company, to tap all cost and quality improvement possibilities.

Approach

Strengthening the procurement organization


We supported the client in a transformation that aimed to enable the procurement organization to become a benchmark in generating value for the firm, including:

  • Strengthening the role of procurement within the company to increase its impact on cost and quality
  • Streamlining the procurement organization, processes and interfaces to the business to facilitate seamless collaboration
  • Radically increasing the skills of all employees involved in the procurement process

Value

Future fit organization


Successful new procurement organization established.

Continuous savings generation of ~10% on procurement volume