Transformation of an energy sector pioneer

Background

Following the deregulation of public procurement in the utilities sector, our client aimed to become the top procurement organization in the energy sector. This objective was supported by several strategic reviews, both top-down and bottom-up, which identified significant untapped potential in procurement.

Challenge 

The challenge was to streamline processes and reduce the dependency on consultants. To achieve this goal, it was necessary to enhance efficiency and speed up the value creation of the procurement organization.

Solution

To reach the goal we needed to reshape the current procurement organization, identify its strengths and weaknesses, and reorganize the procurement processes to make the organization more cost-effective.

Through strategic analysis and a four-step reorganization, we reshaped their procurement landscape. From in-depth interviews and spend analysis to a comprehensive maturity assessment, GAP analysis and organization design we plotted a course toward enhanced efficiency and cost-effectiveness.

• Interviews and spend analysis were conducted to gain an understanding of the current state.
• Maturity assessment & GAP analysis were carried out to set an ambition for the future state.
• A new procurement organization was designed based on the current state and future target.

To guarantee the success of the reorganization, we were involved in every step of the implementation process. We supported the client with finalizing the design, negotiating with unions, resourcing & transition planning as well as communicating, anchoring, and launching the new organization.

Result

At the end of the project, a streamlined procurement organization was in place, reducing dependence on consultants and paving the way for sustained success. With a new organization launched and a roadmap for transformation firmly in place, our collaborative approach ensured a successful result with a savings potential of 15 % in yearly personnel costs. Additionally, a transformation roadmap was established and integrated into the yearly development plan to ensure that the full potential of the reorganization could be realized.