Center of excellence
Reimagined operating model drives strategy, innovation and efficiency for $9M in direct value
At a glance
Streamlined & centralized operational approach
Results
$9M
Direct value in the first year.
36,000+ hours
saved of analytical work.
6-10x ROI
per investment for the client.
The need for change
To achieve the full value of digital transformation, the manufacturer knew it needed a globally scalable model that would integrate digital solutions and adjust existing processes. A smooth transition would require a complex technical implementation in addition to change management and employee reskilling.
As part of the transformation the team focused on solving the following:
- Reduction of manual processes enabling employees to focus on strategic tasks
- Adding market predictability to normalize excess or unstable inventory
- Centralizing and unifying procurement operations by utilizing best practices
Scalable services team drives operational excellence
Working alongside managers at the company, Aligned Automation embedded a Center of Excellence (CoE) that leveraged their deep knowledge of supply chain systems functions and resources. CoE team members focused on (1) strategic work, including goal setting, project planning and negotiations, and (2) analytical work, reviewing data insights and driving efficiencies through process enablement and machine learning for high value projects. This centralized group of experts complemented the client’s procurement teams around the globe by running short term strategy and tactics, allowing the client’s employees to focus on Next Generation Procurement strategies.
Center of Excellence Domain
Contract management
Supplier search & onboarding
Sourcing support
Market insights
Data & spend analytics
Category management
Realized value tracking
Reporting & auditing
Invoice validation
Negotiation strategy
A key enabler of the CoE operating model is the comprehensive use of a Nerve Center solution to streamline practices and drive efficiencies along the value chain. Managed real-time in the Nerve Center are Procure to Pay processes, KPIs, Supplier Relationship Management, Spend Analytics, and all Procurement projects and initiatives, ensuring complete visibility and inter-relationships across previously siloed teams.
Solution expertise and a collaborative operating model deliver outcomes in every region
CoE consultants – an extension of the primary procurement center – helped drive value capture initiatives and enhance supplier relationships. CoE optimized solutions have resulted in $9M savings for strategic projects within the first year, and the analytical team has driven efficiencies while freeing up 36,000 hours of employee time to focus on strategy, innovation and alignment. ROI for the client ranges from 6-10x per investment made within the CoE, delivering and sustaining fast, cost-effective value.
In building an effective and scalable team while uniting cross-functional efficiencies, the client has accelerated forward-thinking digital strategies and maximized relevant skillsets for the future.
