Pan-European Purchasing Transformation
Interim Management Case Study
Global Chemicals Manufacturer
Industry
Global Commodity Chemicals Manufacturer
Client
Acquisitive North American commodity chemicals business.
Background to Interim Purchasing Management Assignment
Client owned two European commodity polymer manufacturing plants which had recently been acquired and was busy acquiring another four, from another global chemicals manufacturer. During previous acquisitions the client had utilised support from a well known firm of strategy consultants to support the delivery of purchasing synergies. However, leading a small interim purchasing team, commercial deals were established which exceeded targeted synergies within twelve weeks of the commencement of the programme, after which the interim assignment was extended to deliver still more savings. The Director responsible for the post-acquisition transition and integration was able to claim a further $ 2m cost avoidance against the budgeted strategy consultant's fees.
Scope
All direct and indirect purchases for the six European plants:
- 2 in UK
- 2 in Netherlands
- 2 in France
Sponsors
- Director of Post Acquisition Transition & Integration
- European Vice President - Supply Chain
- Vice President - Purchasing
- Director Purchasing (Styrenics)
Purchasing Interim Management Role
- "European Purchasing Leader"
- SAP 4.6 Materials Management (MM) Implementation Owner.
Key Activities as Pan European Interim Purchasing Manager
- Led interim purchasing team who replaced well known strategy consultancy's role in previous acquisitions
- Integrated purchasing operations of four purchased plants from a global chemical company
- Conducted detailed spend analysis of European sites and compared this with global spend
- Led the first "European Supplier Conference", working closely with regional counterparts in North America:
- introducing the new business and its objectives to deliver substantial synergies to its new suppliers and;
- conditioning suppliers to embrace opportunities of increased volume for substantial cost reductions.
- Identified synergy opportunities
- Launched programme of negotiations and delivered the targeted synergies
- Led the Materials Management (MM) workstream for the SAP 4.6 system implementation in the six European plants.
- Implemented purchasing cards
- Established a major UK warehouse
- Launched first European indirect / non-production purchasing programme using an interim manager
- Won business case for new European non-production purchasing organisation
- Recruited permanent European indirect / non-production purchasing team
- Awarded two formal client commendations (one from the European VP - Supply Chain and one from the Global Director of Purchasing for the client business unit)
- Agreements established to deliver post-aquisition synergies after only twelve weeks.
- Delivered raw materials savings 20% above annual target
- Offered the role on a permanent basis. Declined.
- Positively supported the introduction of permanent replacement
- Provided professional hand-over to permanent replacement.
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© www .interim-management-purchasing.co.uk February 2008
