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Cost Optimisation: UK Specialist Insurer

Client challenge

The client had a decentralised operating model having grown through multiple small business acquisitions. Resulting in many small supplier relationships, inconsistency of governance, potential supply chain risk exposure and limited ongoing supply chain value management. The client required a SYSC8 review and plan to close identified gaps, a revised Operating Model to embed sustainable rigour and deliver immediate cost reduction opportunities.

What we did

  • Full analysis of accounts payable spend and associated category opportunities
    • Accelerated immediate quick win benefits
    • Identified Medium & Long term pan group opportunities
    • Launched, ran and delivered multiple RFP activities
  • Designed and introduced a suite of standard templates to embed consistency (RFx, pre and post contract due diligence)
  • Defined a Target Operating Model for Group Procurement (including Assurance, SRM and Contract Management). Supplied role profiles for new function 
  • Tiered entire supply base to identify high risk and key suppliers
  • Undertook a SYSC8 review (contract health, pre & post due diligence and contract management) and devised a priority remediation plan
  • Implemented an Outsourcing Oversight Committee (OOC) with an associated terms of reference and agenda 

The result

  • Greater than 50% reduction of legacy supply base, aligned to business strategy of simplification
  • Closure of many SYSC8 gaps and a plan to close longer term challenges
  • Executive who have direct line of sight to high risk suppliers to provide appropriate oversight and management
  • Creation of an appropriate sized and scaled Procurement Function
  • Sustainable reduction to operating costs
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