A growing software company in the banking sector had recognized the need to adapt its procurement of external personnel to the stricter regulatory risk situation. Previously, HR had ensured the procurement of freelancers and consultants 'on demand' without a solid framework contract basis on the side.
Transformation of professional services procurement
After a legal assessment, the designated new management decided to separate this part of procurement from HR in order to make the risky procurement legally compliant. In this context, separate framework agreements for the procurement of services were drawn up for the first time. The interim manager was commissioned to support the first stage of the transformation of professional services procurement that had been launched. The focus here was:
- Examination of the framework agreements developed
- Contract negotiations with external personnel providers
- Structure and process organization for the area of "external personnel purchasing"
The identified legal risks arose primarily with regard to bogus self-employment and concealed temporary employment when using external personnel in the project business. There was also an internal deficit in purchasing capacity and purchasing expertise.
Processes for framework agreements reviewed and supplier portfolio categorized
At the beginning of the mandate, the interim manager analysed the status of the framework agreement activities and categorized the supplier portfolio. In individual interviews with the relevant division heads, he determined future needs and requirements. On this basis, he agreed the next steps and the negotiation strategy with the management.
The timeframe for maintaining security of supply was very ambitious. Following a specific prioritization specification in accordance with the supplier categorization, the interim manager went straight into the contract rounds.
Professionalized purchasing processes and tasks designed and rolled out
Parallel to the contract negotiations, the interim manager prepared the coaching of the designated purchasing managers. He also developed a professional purchasing structure. Together with the employees, he analyzed the existing purchasing processes. He then designed new processes and tested them for effectiveness and efficiency with selected internal and external stakeholders. In coaching sessions, the interim manager primarily conveyed tasks and responsibilities as well as specifics in the procurement of professional services.
Laying the foundations for risk-optimized supplier and contract management
At the end of the first stage of the engagement, the framework agreements with all key A and B suppliers were finalized and signed in a timely and risk-adequate manner. This created the basis for effective supplier management. In addition, the management's request for risk mitigation was met.
Maverick buying rate in the procurement of external personnel almost halved
The interim manager made the optimized source-to-contract process known both internally and to the main external partners. The newly created transparency and efficiency made a significant contribution to improving the acceptance and positioning of purchasing within the company. The maverick buying rate in this product group has more than halved as a result.
Another positive aspect was that the new processes enable technical support and automation along the entire source-to-pay value chain.
