Case Study
PURCHASE EFFICIENCY
FOR A SECURITY SERVICES PROVIDER
MEASURES TO STRENGTHEN THE PURCHASING STRUCTURE AND TO LIFT THE MARGIN
Service Line
Business Transformation
Year
2022
Syngroup Office
Milan
Geography
Italy
IDENTIFICATION OF
WEAKNESSES OF THE PURCHASING STRUCTURE AND INTERVENTION LINES TO RECOVER THE MARGINS
Background

After an intensive acquisition campaign, our client needed to refocus attention on managing deliveries. 

Our client, provider of a broad range of services in the security sector has seen its margins decrease. Furthermore, a robust process of integration of the companies acquired in recent years was lacking with the consequent increase in the management complexity of operations. Under these conditions, the purchasing function did not have time to develop further and grow both numerically and qualitatively.

Targets
  • Outline the main lines of action to bring purchases back to the level of efficiency and effectiveness necessary to support the business;
  • Estimate the economic potentials and times of obtaining;
  • Propose and set up a team for long-term support.
Our Approach

Syngroup analyzed the internal and external management processes of the purchasing department, evaluating their value in relation to the savings objectives desired by the company. The following areas were highlighted, on which to focus the consultancy intervention:

  • definition and discussion of the need towards the other company functions;
  • expansion of the supply market;
  • construction of matrices and evaluation grids;
  • preparation for negotiation;
  • exploitation of the drafting of the contract as an element of “last negotiation”;
  • construction of advanced reporting for performance control.

The need was also highlighted to develop the work group and move from a behavior oriented towards making materials and services available “as required” and at reasonable prices to one oriented to proactively collaborating with other company functions to identify opportunities for costs reduction.

Methods
Methods
Interviews with the purchasing dept. staff
Comparison with best practices
Assessment of the hypothesized interventions
Presentation of the project to the Management