LEADING FINANCIAL SERVICES COMPANY TRANSFORMS END-TO-END PROCUREMENT OPERATIONS, SAVES $17MM WITH VALORANT

Case Study

AT A GLANCE

  • An American Financial Services company with over $1.5 Billion in revenue hired Valorant to drive transformation in its purchasing practices by designing and implementing a best-in-class Procurement strategy.

Objectives

  • Design & implement a best in class procurement strategy which includes:
  • Industry-leading spend taxonomy for all third-party spend
  • Procurement policy and processes
  • Third Party Risk Management program
  • Supplier Relationship Management Program
  • Best-in-class sourcing, negotiation and contracting methodologies

Results

  • Identified and delivered savings opportunities of ~ $17MM over a period of 24 months
  • Improved process efficiencies and redundancy elimination
  • Comprehensive risk management framework, best in class contract management methodology
  • Established long-term plans to drive innovation and continuous improvement through Supplier Relationship Management

In Scope Categories

  • Travel
  • IT/ Telecom
  • Market Data
  • Professional services
  • Facilities
  • Marketing
  • Contingent Labor
  • Information Services

THROUGH AN INITIAL CURRENT STATE ASSESSMENT, VALORANT DETERMINED PROCUREMENT MATURITY TO BE LOW

Key Challenges Faced by client

  • Procurement considered non-strategic
  • Not leveraging enterprise wide spend with vendors during negotiations
  • Multiple disparate systems & tools leading to poor spend visibility
  • Non-existent category strategies / playbooks across most categories
  • Lack of contract compliance and best practices
  • No active third-party risk management procedures
  • Lack of standardized processes & policies

A COMPREHENSIVE PROCUREMENT SOLUTION TO ENABLE STRATEGIC VALUE CREATION

  • Post initial discussions with the client’s executive leadership team, Valorant proposed the following solutions/ deliverables to help the client meet all of their objectives from the program:

Spend Analysis

  • Consolidate spend data from various sources like AP, T&E etc. Normalize spend classification and analyze based on supplier, subcategories and region. Identify strategic suppliers by using Pareto principle.

Opportunity Assessment & Sourcing Roadmap

  • Conduct interviews with key stakeholders to understand existing processes and projects. Leverage spend analysis with stakeholders’ inputs to identify sourcing opportunities. Create a sourcing roadmap including prioritized list of opportunities with savings estimates and timelines.

Category Strategies

  • Develop long term category strategies for all in-scope categories, perform spend analysis, contracts analysis, external analysis and recommend an effective sourcing strategy for each category.

Procurement Transformation

  • Provide Procurement expertise, tools, templates, best practices and benchmarking information to help transform client’s Procurement function including people, processes & tools to best-in-class. Support overall transformation program with effective change management techniques.

Sourcing execution

  • Execute sourcing initiatives identified in the roadmap. Projects can include direct negotiations, RFP, demand management etc.

Download PDF to Read More

  • Download full PDF report to know more about how Valorant helped a leading financial services company in transforming its end-to-end procurement operations

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