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Procurement process under the microscope

Background

A not-for-profit organisation saw its fundraising income decline. There was a need to optimise internal business processes to use the available resources, largely obtained from donations, more efficiently. A value stream analysis of the procurement process for merchandising, among other things, was part of this initiative.

Our approach:

A value stream analysis of the procurement process for merchandising, among others, was part of this initiative.

Results:

After a thorough analysis, the following changes were made:

Optimisation of the procurement process

Introduction of a new order-tracking system, structured procurement planning tailored to requirements and tighter procurement terms and conditions ensured a professional procurement function.

More effective cooperation

The purchasing department was involved in event planning for timely merchandise procurement. This led to a 7% reduction in procurement costs (no extra surcharges for rush orders or courier costs) and reliable availability of products as required.

Unexpected windfall

Structured procurement planning increased the availability of merchandise at events, leading to an increase (+23%) in revenue from merchandise sales at the largest events. This offset a significant part of the lost revenue from donations.

Value Stream Map process

3 months

Lower procurement costs

-7%

Sales
revenue

+23%

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