Procurement Organization
Nothing is more constant than change – that applies in the procurement department as well
The role of procurement within a company is changing – and, just like the range of activities that need to be mastered, it is becoming ever broader. Providing effective support for this new role, with a procurement organization design that is tailored to the new challenges, is one of the most important factors for success in procurement.
A forward-looking procurement organization design is based on an optimized commodity group structure which does equal justice to both the trading conditions and the specific characteristics of the company and the industry. Bundling together expertise relating to specific commodity groups while at the same time making it widely available is an organizational challenge which needs to be met. The internal integration of procurement within a company, such as early involvement in research and development processes or efficient cooperation with the finance department, for example, constitutes important potential which can be leveraged by means of a suitably aligned procurement organization design.
Last but not least, the responsible managers need to ask the question of whether there are any areas of activity in the procurement department which could be carried out more efficiently by an external service provider or in conjunction with another company or business unit, due for example to limited market power or to the possibility of greater standardization.
Camelot will help you to face future procurement challenges optimally by providing holistic concepts and industry-specific expertise, supporting you along the path to your forward-looking procurement organization-design.
At Camelot our main focus points for strengthening your procurement organization design are:
Shared Services / BPO
Shared services means that demands are consolidated in a corporate center. The procurement department acts as an internal service provider and coordinates corporate-wide demand.
With Business process outsourcing (BPO) the responsibility for the operational procurement processes for specific commodity groups is transferred to an external third-party service provider. By providing its services to several companies out of the service center the external service provider can leverage on his negotiation and bargaining power as well as enhanced operational process efficiency. The implementation of a bonus/ malus system for the service provider is very important in the case of BPO to increase the service provider’s interest in optimizing its processes continuously.
Camelot will accompany your procurement organization through this process of change. Our experienced consultants will help you successfully restructure your procurement operations.
Category Management / Lead Buyer Organization
Introducing a category based organization for strategic sourcing is an important step for the efficient repositioning of the procurement department. Not only volumes, but also market and sourcing expertise are pooled in the right places so that optimal sourcing strategies can be realized for the company.
The basis for an effective category management organization is the allocation of categories and the global definition and assignment of the corresponding roles and responsibilities.
Lead buyer concepts allow the cross-locational and interdivisional coordination of category sourcing strategies without the need for a complete centralization of the category management.
Our comprehensive service starts with the optimization and standardization of the category group structure and extends to the creation of concepts for the future procurement organization and processes. Finally, our experienced procurement and change management staff will assist you with the actual implementation.
Procurement Transformation
Procurement transformation goes hand in hand with a realignment of the purchasing strategy, organization and processes. Establishing a new procurement strategy usually calls for a reorganization of the procurement department.
Camelot can guide you on this transformation journey. We will develop a SWOT analysis and identify transformation opportunities based on the overall corporate strategy and the corresponding implications for procurement. Our best practices approach will enable you to manage projects in a structured manner and allow you to effectively steer the project team with our experts.