A large public service organization had conducted a budget analysis and identified total purchases of 870 million DKK across a variety of categories. Meanwhile, the analysis had made it clear that there was savings potential if the procurement process was more efficient. Therefore, Prokura was asked to launch a new procurement program to improve both the strategic sourcing process and in the underlying purchasing organization and infrastructure.
The project was divided into several subprojects, and the Facility Management unit (total annual purchase of 270 million DKK) showed particularly great potential. Initially, we developed a new service and procurement strategy, where we defined the purchasing function’s roles and responsibilities in order to support the core business. We subsequently identified a number of savings opportunities and uncovered a large consolidation potential, which led to both reductions in FTEs (full time equivalents) and cost areas.
The project resulted in a streamlining of the organization’s Facility Management through centralization. The establishment of a centralized Facility Management unit created synergies across the country. Amongst other things, common service levels and improved contracts with suppliers were achieved.
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