ILOS restructures purchasing process and acquisition planning at a service sector company.
A service company with strong relationships between the public and private sectors was facing difficulties in its procurement process. Due to decentralized purchasing practices, many inexperienced requesters, and a high rate of untimely requests (often submitted before the contracting lead time), the company suffered from high rates of non-compliance, rework, and customer dissatisfaction.
To improve the supply process, the consulting firm ILOS carried out the project in 3 phases: analysis of the current purchasing situation, structuring of the future process with changes and recommendations for improvement, and finally, the development of an implementation roadmap, defining activities, deadlines, and responsibilities.
The new process recommended by ILOS established the centralization of requests, in addition to indicating a new format for acquisition planning, defining rules and lead times for plans and purchases. The new process anticipated increased specialization and expertise among requesters, reducing rework and discrepancies.
project type
- Optimization of the logistics network
Segment
- Fashion and clothing
Structuring the procurement planning process and centralizing purchases.
Challenge
The company had a decentralized purchasing process, with many inexperienced requesters, numerous urgent requests, and unrealistic deadlines. Due to a poorly structured procurement plan characterized by high levels of non-compliance and rushed processes, the amount of rework was high, and meeting deadlines was unsatisfactory.
ILOS solution
ILOS restructured the company's procurement planning process. It indicated the creation of specialist roles to centralize the company's procurement requests. It reduced the number of requesters to ensure greater expertise and speed in purchase execution. It pointed out necessary systemic changes.
- Analysis of the estimated tax benefits with the new CD
- Definition of areas to be served by the eventual distribution center in Minas Gerais.
- Sizing the necessary capacities in each scenario.
Results
The expected results from the ILOS consulting firm indicated a more suitable process for reducing urgent purchases, increasing demand fulfillment, decreasing rework, increasing procurement compliance, and improving internal demand fulfillment.
- ILOS conducted realistic estimates of the tax benefits that could be captured, identifying that these gains were below the client's expectations.
- Recommendation not to open a new distribution center in Minas Gerais.
