Savings Tracking software demonstrates Procurement Excellence
A UK FTSE 250 world leading provider of mobile power solutions with a staff of 6000 who deliver solutions to clients in over 100 countries.
Within weeks of being appointed, Odesma had undertaken significant analysis of the procurement operation and third party spend data. This identified a number of areas where significant savings could be made.
The client’s UK operation has a large fleet of rental temporary power units in use across a wide range of sectors. They had 14 suppliers of fuel in the UK, structured loosely around three areas: North, Central and South and were spending £14M per year with them.
With work having already been carried out in this category, there was an internal belief that any saving above £500k would be impossible.
However, there were still questions marks against why some suppliers could be more competitive than others; why local suppliers had the edge over national suppliers in terms of delivery responsiveness; why the supplier map didn’t match up with the distribution, and why one supplier dominated supply despite issues with service levels.
To source an innovative approach to managing and tracking all individual savings projects. The technology would need to to track a savings target of $65M, over 300 projects spanning 6 continents and 15 business entities.
For a programme of such dynamic complexity, where immediacy, clarity and transparency were key, it wasn’t going to be feasible to manage and provide the necessary level of reporting by using the traditional approach of spreadsheets.
Odesma planned and executed the deployment of Provalido, a web-based savings tracker tool, to deliver all the project planning, tracking and reporting requirements needed for the programme. Cloud-based and extremely simple to use, the Provalido tracker delivered the visibility, rigour and stakeholder engagement needed to make the programme a success.
Once savings projects were identified by the Odesma category specialists the core information for these were loaded up into Provalido using their simple web-based user interface.
Provalido then created the approval related workflow functionality for each project, ensuring that projects could only be started once a charter defining the reason(s) and objectives for the project and the baseline from which and how any savings would be calculated was agreed and signed off.
Once up and running, projects could be reported on at a macro level to the CFO or Programme Executive Director and at a more micro level for each of the client’s business entities and units around the world as well as Senior Executives and the Group Programme Management Team.
Once completed, a contract and price agreed or process improvement established, all the supporting evidence for the savings each project was loaded up into Provalido by the Project Lead, triggering a request for approval from the assigned approvers for the project.
With a core Procurement Team of 22 personnel and a broader user community of 150 personnel trained, Provalido continues to be used by the client around the world to plan and track savings projects through a blend of training webinars, weekly drop-in web-based surgeries and train the trainer sessions.
Provalido was also exceptional in providing the rigorous approval audit trail required by the client.
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