A large financial service provider in South Africa had a lack of Strategic Sourcing Category Plan’s in place to provide the company with direction to successfully reduce cost within the business. The bank also had a lack of senior strategic sourcing procurement expertise and therefore did not have the internal capability to deliver the project.
Services
Caliba was engaged for a 12-month period to:
- Fulfil a leadership role, leading the Procurement Team responsible for the majority of non-IT category spend. Total spend of this Procurement Team ~R6bn (this included categories such as Group Real Estate, Security, Cash in Transit, Point of Sale, Loyalty & Rewards, Learning & Development)
- Lead the creation/development of Category Plan’s for the above mentioned Categories
- Review of current status/contracts; industry and supplier analysis, internal spend analysis, benchmarking, determination of total cost of ownership and cost drivers, risk analysis, identification of cost saving opportunities; development of sourcing strategies; determining implementation plans and timelines
- Assist the internal procurement team to deliver on the agreed Category Plan’s, including leading related sourcing events
- Transfer skills to the internal procurement team
Outcome
Caliba delivered the following outcome:
- Multiple category strategies that were well received by business and approved
- Cost saving targets achieved across all categories in scope
- Improved the awareness of Procurement in the business, showcasing the value-add Procurement could offer
- Business engagement significantly improved
- Transfer of skills to the in-house procurement team resulting in an up-skilled team
- Contracts in place cover all spend in scope