Regional US bank with assets of over $37.1 billion.
This project was to launch for ten months thirty different strategic sourcing activities covering Indirect services spend categories plus Direct spend related to insurance and banking industries such as ATM credit cards, checks, appraisals, hardware. The expected deliverables were to deliver at minimum 8% savings and to promote best in class strategic sourcing methodologies.
The biggest challenge was to map the spend over 300 locations without any regional procurement organization to support the analytics. Also, some agencies were open, and others closed. It was complicated to build the active addressable spend before starting negotiations with suppliers. The sourcing project team had to build a mapping covering hundreds of suppliers, without any multi-site business processes.
In parallel to a source-to-pay transformation, our approach was to complete a detailed spend analysis, and define sourceable spend into multiple project waves in order to deliver new cost savings.
The project execution required the Client sourcing team to remain engaged from a subject-matter and line-of-business support perspective, which ultimately allowed for great efficiency in execution of the sourcing efforts. The sourcing results exceeded the target with 12% savings across all spend categories. The Client sourcing leads were also able to pilot e-auctions with a new eSourcing solution.