Procurement Process Review

The client.

A large consumer credit card issuer.

The business issue.

This company engaged Claro Group professionals to perform a review of its existing procurement processes, organizational structure and technology tools. The company recently had reorganized its procurement department and found it difficult to demonstrate its value to the overall organization.

The goals of the project were to compare the company's operations to best practices in the financial services industry as well as other non-financial services organizations, and to identify opportunities to improve the various functions performed by the procurement organization. In addition, the company was preparing to implement the Ariba Enterprise Spend Management Suite and was seeking guidance on an implementation approach and modules to include.

The solution.

Claro Group professionals designed a four-week assessment that would review the company's existing procure-to-pay process; the technology tools used to support the process (PeopleSoft); the organizational structure, including end user involvement in the procurement process; and the existing communications and reporting mechanisms required to provide information to the organization.

The project team worked with the key members of the procurement team to develop an understanding of the company's current procure-to-pay process, including how the company used its existing procurement system throughout the process. Using this information, team members identified gaps between the existing processes and best practices.

Finally, the team helped the company evaluate technology tools (e.g., Ariba Buyer, Analysis and Contracts) that would enable its procure-to-pay process.

The results.

Based on its analysis, the project team identified opportunities in the following areas:

• Procure-to-pay process
• Technology tools
• Supplier relationship management
• Savings tracking and reporting
• Category management
• Organizational structure

The team defined a ‘to be' state and planned implementation of the Ariba Enterprise Spend Management application, an improved organizational and reporting structure, a defined supplier relationship management program and an overarching procure-to-pay process. During integration planning for the new Ariba system, the team identified multiple opportunities for integrating it with existing systems.