Background:

The world's largest company's largest and most profitable division GE Capital wanted to aggregate it's European purchase base to maximise leverage and to up-skill it's purchasing capability in each of it's European business units. ADR were appointed to identify the opportunity and facilitate the implementation of a category management programme.

Aims:

To introduce a robust category management process and to transfer process, purchasing and category skills to the key Sourcing leaders and sourcing influencers across the UK and European businesses. .

Project:

Recognising the distinctive culture of GE Capital ADR introduced a programme which approached this challenge using three key elements:

- Introduction of structured ways of working for the GE Capital in Europe - this approach included a category management process, opportunity analysis, portfolio analysis, PPCA and CIAs.

- Training and development of GE Capital staff - purchasers and those who influenced supplier selection and ongoing vendor relationships.

- Working alongside the European sourcing leaders on specific categories to embed the training and help in the delivery of the benefits

Category examples were:

- Telecommunications

- Print

- Fulfilment

- Postage

- Third party contract manufacturing

- Marketing Services

- IT Services

- Outsourced IT services (moved to India)

- Collections (Bad debts)

- Legal fees

- Credit Reference

- Statementing

- Paper & Stationery

- Temporary Labour

Results:

The assignment delivered considerable reductions in the cost of purchased goods and services, and furthermore, left GE Capital with a robust process for future progress and a much more capable and competent purchasing team.