Vehicle Push Back Creates a £1.5m Saving
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.
Our client is a private equity house based in London and a subsidiary of a Global Financial Services Group based In Australia who provides capital to European and US businesses for expansion, acquisitions, recapitalisations, and management buyouts.
The client acquired a business from one of the largest outsourcing and technology companies in the UK. The transaction was completed in late 2018 and the business owned a large number of real estate and technology to monitor services on public and private land.
Over a 4-month period Odesma was engaged by the P.E. firm to review and recommend the future procurement operating processes and policies and the overall guidelines for procurement activity across the whole business. It was essential that these were created quickly to provide the new owners with a degree of comfort and risk mitigation within their governance environment.
In addition, the approach to supplier approval and onboarding was needed to be significantly improved to provide assurance for the P.E. firm that the suppliers were operating to a high standard both legally, fiscally and in line with the new owner’s business expectations. It was critical that these new policies and procedures were designed to be implemented quickly and to a best practice standard within this market sector.
Our approach was to quickly assess the current environment to understand the current “As-Is” procurement approach specifically from the perspective of business control and governance.
To achieve the P.E. firms’ objectives, we focused on some key activities:
- Understood the overall approach to procuring goods and services, focusing
- on the actual process of ordering currently (from requisition to invoice receipt
- and approval) and the control processes under which this activity occurs
- Reviewed the current approach/as to supplier approval
- Understood the existing level of protection in supply relationships with
- regard to future business plans.
- Identified any business priority or legislative areas impacting third party
- expenditure that could be of concern for the P.E. organisation that has not previously been highlighted.
Over a short time period of 4 months we presented recommendations to the P.E. Partners and Executives of the organization, i.e.;
- A full analysis of the existing company exposures, and an agreed set of improvement recommendations within their procurement operations for quick implementation
- A new control and governance structure to provide the P.E. firm confidence that third party expenditure would now be under control via a new set of policies and procedures
- A new approach to supplier approval and onboarding, and highlighted high risk vendors, as well as insurance provisions
- We defined the new approach to contracting and associated rules, identified any new key policies related ethics, money laundering, anti-bribery and modern slavery
- A full FAQ guide for those making or who are involved in third party spend in the business
In addition, we also recommended some quick win opportunities to reduce spend with some of their key suppliers and existing contracts – these were subsequently acted upon and delivered some significant short-term P&L benefit for the P.E. owners.
All of our recommendations and deliverables were implemented by the organisations in a short period of time to achieve all of the requirements of the brief
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