Procurement Maturity Assessment & Benefit Delivery
JDP was appointed by a well-known UK utility sector provider who felt their procurement and supply chain function was operating at sub-optimal performance.
Challenges included:
• Varying levels of capability and performance
• Criticism by key stakeholders of the team’s capability
• Tactical and reactive approach to procurement
• Delivery of minimal added value
• Excessive time taken to undertake procurements
• No defined strategy to leverage benefits across a diverse portfolio of project-based spend
JDP was asked to undertake a maturity assessment of the procurement department, focusing on five core areas: people, organisation, policy and process, information and technology. Gaps between the current and required future state were identified and a series of recommendations, together with a pragmatic roadmap to delivery, were introduced to address any shortcomings.
Approach
• Designed a clear and effective organisation structure
• Undertook a skills and capability assessment of the team to determine development plans and resourcing requirements within the revised structure
• Benchmarked the organisation against peers and ‘leading’ procurement practices to define a baseline
• Created visibility of third party spend through effective analysis and reporting
• Built a delivery roadmap to achieve optimised value, operational efficiency and effective governance and compliance
• Implemented a contract and supplier management system to manage the performance of third parties
• Delivered a programme of training and mentoring across both the supply chain team and its key stakeholder groups
Achievement
