Process optimization and organization of indirect procurement

Optimization of the current procurement processes in the supporting departments and to align them with each other.
Piet-Michiel Rappelet

Strategic challenge

Within the Colruyt Group, there is no central procurement organization for indirect procurement. Each supporting department (IT, HR, Engineering, Real Estate, Marketing and Finance) is responsible for organizing its procurement process. This project aims to optimize the current procurement processes in the supporting departments and to align them with each other.

Approach

Due to the large variety within indirect procurement, both in terms of the type of procurement and the procurement processes themselves, the change was implemented in a step-by-step manner. The focus was on continuous improvement (plan-do-check-act) and the gradual involvement of the stakeholders. Three major phases were completed:

Phase 1: Determining vision and direction

  • The focus lies on bringing together the various procurement managers and setting common objectives.
  • Achievement of the first ‘quick wins’ shows the profit potential.

Phase 2: Executing (pilot) projects

Both common ‘group’ projects and projects within each department. The focus of the projects was as follows:

  • Process: Optimizing and aligning the procurement processes
  • Strategy: More strategic procurement and translating the group strategy to operational level
  • Data: Building a Data Warehouse and building reports and dashboards to be able to control and follow up on indirect procurement strategically, tactically and operationally.
  • Requirements: Establishing business and system requirements for future IT support

Phase 3: Anchoring in the organization

  • Communicating the developed resources to all buyers and procurement support.
  • Transition from project to domain with a knowledge center, with internal staff.

Result

Optimization of indirect procurement at strategic, tactical and operational level. Improvement of the procurement strategy, instruments and reporting, with a focus on efficiency, risk management, internal service and skilled labor.

Establishment of a knowledge center for indirect procurement within the Colruyt Group.

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