Outcome (in tiles):
Reduced procurement spend by 17% in first year
Reduced risk by moving vendors to internal paper
Increased visibility over spend
Reduced SaaS sprawl
Improved forecasting for Treasury

The Challenge

A global fin tech was at a stage of maturity that required a formal procurement function. Prior to the establishment of Procurement, the company lacked policies and processes such as standard payment terms, internal paper when dealing with vendors, purchase orders and cost catalogues. These issues were straining their ability to scale, causing cost leakages, protracting the finance month end and impacting on the ability to proactively manage cash flows due to lock of ability to forecast costs.

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Our Approach

We established a fit for purpose procurement function with the following elements:

• Procurement system integrated with the finance ERP
• Policies around standard payment terms, T&C’s, procurement of specific goods and services, use of credit cards
• Consolidated spend for the procurement of common goods and services to obtain optimised pricing
• Hired a lean team to manage procurement
• Implemented procurement KPIs and automated dashboards for monthly reporting
• Centralised negotiation of major contracts to obtain better pricing and terms