Context
A decentralised company with more than 30 independent subsidiaries was looking to centralize its purchasing. However, they could not achieve their objectives in a heterogeneous conglomeration of Purchasing units and practices
CKS was mandated to help the Purchasing Department of the Corporation to give impetus to a new Purchasing strategy, coordinate among the different units and shape up the Purchasing community professionally.
When the audit was finished, CKS proposed a scheme to pool Purchasing resources across units and a communication scheme to improve the way Purchasers were perceived.
Objectives
- Increase awareness of the Purchasing function and highlight the roles and missions of the Central Purchasing Department
- Coordinate among the Purchasing strategies of the different subsidiaries and promote collaborative practices
- Get all the subsidiaries to accept the framework contracts set up by the Corporation's management
Resources
For the complete duration of the mission, CKS mobilised a team of three consultants who were specialised in transportation and public works.
By bringing together the different subsidiaries' Purchasing teams with the Central Purchasing managers, CKS created greater communication through the following actions:
- Lead a Purchasing Circle for key categories: metal products, products for construction sites…
- Created and distributed a Newsletter
- Created indicators for how well framework contracts were being used
- Included in the agenda of management meetings how well framework contracts were being used
- Published a communication kit for foremen, including a special pocket-sized, resistant, waterproof edition to be easily carried around on construction sites.
Results
- Close adherence to the main framework contracts
- Active sharing of information and practices among subsidiaries
- Creation of a genuine Purchasing Circle working directly with Central Purchasing
