The management of VSV Group had already identified purchasing costs and development needs. It was just missing a plan and the people to implement it. The target was all of the group’s acquisitions (materials, goods, services, and contracts). The starting point was already extremely carefully considered in a situation where procurement was distributed to business units and subsidiaries. There was no one in charge of procurement, which was performed by various employees throughout the organization in addition to their primary duties.
The process started with a comprehensive assessment of the current state, and the goal was a group-level strategic operating model with common ground rules as well as clear roles and responsibilities utilizing group-level synergies. Another aim was to identify and enable comprehensive procurement support in the systems.
We understood that VSV is not a manufacturing business and that its supplier base is very heterogeneous, which meant that the goals and operating models had to be adapted to these realities. The participation of VSV Group’s executive team was essential for our success, and it was excellently implemented—the no. 1 key factor of our success! We planned the key employees’ time use in advance, which enabled us to use our mutual time as efficiently as possible.
The procurement function’s operating model was created at the group-level, including different business operations, procurement categories and responsibilities as well as resourcing and KPI’s. Another key factor was the establishment of a procurement management model, which gave procurement development a clear structure.
It is important to point out that the results were due to the commitment and contribution of the key members of the procurement team. ValueSource helped with sparring, provided guidelines, built an implementation plan for the 2021–2023 period and continues to support VSV Group in the implementation of its procurement strategy.