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Procurement Capability: UK Specialist Insurance Broker

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
  • Developed a sourcing governance framework including key policies, processes and templates to ensure consistent and effective procurement activities across the organisation
  • Defined a Target Operating Model for Group Procurement, including Assurance, SRM, Contract Management and role profiles.
  • Tiered entire supply base to identify high risk and key suppliers
  • Undertook a SYSC8 review which included a review of contract health, pre & post due diligence and contract management) and devised a priority remediation plan
  • Implemented an Outsourcing Oversight Committee with an associated terms of reference and standard agenda

The result

  • Over 4% sustainable cost reduction in the client's entire cost base within 16 weeks
  • Reduced cost for agreed addressable spend by 22%
  • Delivered SYSC8 gap analysis and remediation plan
  • Creation of an appropriate sized and scaled Procurement function
  • Greater than 60% reduction of legacy supply base, aligned to business strategy of simplification
  • Creation of a preferred supplier list
  • Created an end to end suite of policies, process and tools
  • Ran 15+ sourcing events, including holistic management of RFI/RFP process
  • Implemented a control framework regulatory compliance
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