Procurement Transformation - National Retailer

Jim Cowan
Partner, Heavy Industry
Heavy Industry
Strategic Procurement
November 20, 2023
spend reduction
capability assements

Client Problem

The national retail company owned several iconic Australian brands and had a requirement to reduce costs to fund its online sales strategy, which included the transformation of its indirect spend category management team.

Caliba Solution

The client required additional funds for its online sales strategy and felt there was cost reductions to be achieved in its indirect spend areas to contribute to these funds. The company also required a new category team structure to be developed to better service the requirements of the business.

Caliba was engaged to complete an opportunity assessment across all indirect spend to identify cost reductions; a capability assessment of the procurement team; the development of procurement policies and procedures; and recommendations for a new procurement function structure.

The capability assessment involved assessing team member capability against as set of industry capability standards. A capability report was developed identifying the gaps for each team member, and recommendations to bridge the gaps.

The outcome was a fit for purpose procurement function, new policies and procedures, 11% reduction in spend in scope, and a plan to up-skill the current team and recruit new team members. Caliba also contributed to the development of team position descriptions and capability levels.

Related Insights