For many years, an international fashion group successfully focused on developing the latest fashion trends, selling in its own stores and low-cost production in Asian procurement markets. Due to growing competition and increasing online retail, both sales and profitability came under severe pressure. The company developed a new corporate strategy. One important measure was the establishment of a centrally managed indirect purchasing department. The interim manager was given the task of quickly setting up a centrally controlled purchasing system for all goods and services except fashion items. The significant cost savings targeted were to be achieved primarily through standardized and modern processes, systems and methods.
Status analysis and strengths/weaknesses profile create the basis for purchasing development
As part of an inventory of purchasing activities across specialist departments and various European locations, the interim manager evaluated the available data ("spend analysis") and conducted many interviews with buyers, suppliers and internal partners. The result was a strengths and weaknesses profile ("SWOT"), which formed the basis for the subsequent sub-projects.
Developing a compliance manual for purchasing processes and setting up indirect purchasing
As an experienced purchaser, the interim manager was aware that it would not make sense to centralize all purchasing activities in the indirect area, as the procurement markets are often organized locally. Instead, his main focus was on centralized control, which he achieved by introducing a uniform compliance manual for various purchasing processes, among other things. In terms of the organizational structure, the interim manager initially relied more heavily on existing resources due to the time pressure. Some employees were transferred to the central indirect purchasing department. The interim manager trained the employees there so that they became independent and could focus on purchasing activities.
Customer-specific phase model and selection of an e-procurement system
The interim manager developed a customer-specific phase model for the sustainable introduction of modern methods. In the first half of the year, the focus was on developing category strategies, i.e. determining how to operate on the procurement market, and internal coordination in purchasing teams. The interim manager was also intensively involved in supplier management in order to jointly develop innovations and leverage cost-saving potential.
In parallel, the interim manager organized the selection of an e-procurement system. He guided the company through this process, from the description of requirements and the invitation to tender to the presentation of possible providers and the selection decision. He closely involved the IT department and quickly reached a joint decision on a solution linked to the ERP system. The project was then set up jointly.
Improved risk and interface management as the next goals
Once the purchasing agenda had been agreed with the Management Board, the core processes published and the system implementation started, the interim manager helped to select a purchasing manager and handed over the further development to him. The next phase of purchasing development was aimed at structured risk and improved interface management.
