Centralising procurement to improve cost savings and efficiencies

Problem

Colt Technology Services, a global network, voice and data services provider was acquired by Fidelity Investments which wanted to improve the profitability and efficiency of the group. Procurement was devolved within each business unit and there was limited procurement oversight, meaning supplier expenditure was not being managed effectively.

Solution

We led a procurement transformation of the function that began with designing and implementing a centre-led procurement operating model, utilising existing shared service centres in India and Romania to centralise all transactional procurement and supply chain processes.  Strategic procurement such as category management and SRM were implemented in the UK where key supplier and business relationships were held. A procurement digital roadmap was designed and implemented to improve the efficiency of key procurement processes such as P2P and supplier onboarding.

Results

• Increased savings by over 100%

• Reduced procurement and supply FTE costs by 25%

• Established a shared service centre in Romania and India reducing staff costs by 30%

• Outsourced logistics and warehousing across 19 countries, lowering costs by 25%

• Established a SRM programme that increased revenue by £25m

• Implemented Ariba P2P & SIM across EMEA & Asia improving PO compliance from 40% to 80%