The nature of the construction industry, whereby works and services are carried out on a project-by-project basis, means the sourcing approach is different from that of other sectors. There is no steady flow of demand, so it is not predictable. In industries akin to manufacturing, often estimates can be made for the next few years, but not in construction. The variables change: budgets can change at short notice, as can types of material, specifications, or timelines. Geography and weather impact milestones and requirements, and parts of a framework might be postponed or removed.
Henkel’s and McCoy were challenged to create a centralized procurement organization within the business to put better risk mitigation, supplier management, and financial control procedures in place.
Starting from a department of one, the organization has leveraged BravoSolution’s combination of tools and advisory services to grow a fully centralized, process-efficient and forward-looking procurement function.
Today, it has a dedicated procurement manager for each business unit. It anticipates that within 12 to 18 months’ time, these people will be in a position to identify others within their lines of business who should be using the tools, and further training will take place.
Download the full case study to see how BravoSolution is helping Henkel’s and McCoy deliver more value to the business and support procurement transformation.