The Chief Executive of North East England-based engineering company, Dominick hunter, identified that the company’s purchasing effectiveness was being challenged. This was mainly due to its quick expansion, with average annual growth rates of 17%, and rapid product innovation which had led to increased divisions within the business.
To identify possible areas of purchasing weakness, ADR conducted a 12-month Purchasing Initiative.
To ensure Dominick hunter’s purchasing strategy was brought up-to-date with the company’s changing needs.
The programme saw ADR lead a steering group of senior managers who directed the change programme. This ensured the creation of a more focused purchasing team that was integrated into all key business processes.
Customer responsiveness and technical / product leadership are the cornerstones of our growth in revenues and profitability. We knew that our purchasing effort was not keeping pace with the needs of the business and asked ADR to prepare and implement a phased change programme to address this issue.
The benefits flowing from this are considerable, ranging from significant cost reduction on current products and services, an improved product development process with shorter lead-times and lower initial costs and, unusually, a significant new source of valuable market intelligence. Purchasing is now a key business strength of our fast moving business".
(Reproduced with the kind permission of the Chief Executive of Dominick hunter Plc).
PRISM and Transformation
Identify areas of purchasing weakness
Cost reductions Improved product development