Structuring and improving the performance of the purchasing department
Structuring and improving the performance of the purchasing department
Context & Objectives
A medium-sized industrial company operating in the commodities sector is facing very unfavorable trends in both its markets and the purchasing conditions for its equipment, materials, and supplies. The supplier offering is becoming more concentrated, leading to significant increases in raw material costs, which is very damaging given their weight in the cost structure (60%).
Internally, the Purchasing department suffers from a lack of structure and analytical rigor and is unable to contain the imposed increases or to achieve savings in less tense areas. This situation has created problems within the team, with the departure of certain key employees and the unavailability of its manager, who is leaving.
It is in these circumstances that the company calls on an interim manager, both to improve the functioning of the department and to achieve short-term savings
Mission
The Interim Purchasing Director is responsible for
Ø In general, dealing with and resolving the organizational and human aspects of the department, but also taking charge of day-to-day operations during the absence of the incumbent;
Ø Conduct a technical, operational, and human resources assessment to identify malfunctions, prioritize them, and develop an action plan to remedy them;
Ø Recommend changes to professionalize operations and improve performance. This includes, in particular, the structure of the department, activity monitoring and performance measurement systems, operational procedures, skills, and therefore team composition;
Ø Propose an implementation schedule and roadmap to steer the various projects;
Ø Determine the savings targets to be achieved in 2022 and the schedule for achieving them;
Ø Ensure change management and improvement in the structure's performance.
Results
Over a period of four months, the interim manager conducts a detailed audit, identifies areas for optimization, and reviews operational procedures and practices to instill best practices, rigor, and a set of KPIs. He proposes a new organizational structure for the department and initiates the necessary recruitment.
He takes over ongoing purchasing files, which he handles in tandem with employees to achieve quick wins that are both economically and pedagogically beneficial.
When a new permanent manager arrives, he leaves the company.