Case study

Design of procurement organization for a manufacturer of industrial goods

Situation

A manufacturer of industrial goods engaged a consultant design the best-fit procurement organization. Delivery Partners conducted spend categorization and market analysis.

Our work

  • Conducted category-level analysis of both direct and indirect spend as well as a high-level analysis of the supplier markets to facilitate adjustment of categorization
  • Analyzed company’s current and emerging markets and sourcing activities and approaches
  • Benchmarked leading procurement organizations structures and sizes, from both project and production industries, to develop organizational options

Results

  • A new organizational structure was recommended
  • Direct and indirect spend was categorized and recommended to be managed at appropriate level with a category manager for each of the individual categories
  • High-level dimensioning of the proposed direct and indirect organizations was developed