When a public sector organization received a reduction in its budget, management were placed under pressure to realize both short and long term savings. A preliminary analysis showed significant savings potential in the area of procurement. Consequently, senior management engaged Prokura for an optimization project.
Our analysis uncovered total purchases of more than 200 million DKK, which led to the first optimization wave focused on 7 of the 22 identified categories.
The first optimization wave consisted of three phases to realize immediate savings:
- Phase 1:undertook a fact-based analysis of the 7 identified categories
- Phase 2:developed a catalogue of saving ideas in a series of workshops held both internally within the organization and externally with suppliers.
- Phase 3: implemented various saving initiatives
The savings initiatives were successful in achieving the desired savings for the coming year. At the same time, the project resulted in process and organizational changes which helped to ensure the long-term impact of the project.
To find out more about this case and other industry solutions for public organizations, please contact Christian Bang-Pedersen.