Support in establishing an efficient procurement department
Professionalization of the procurement organization and reduction of inefficiencies in a fast-growing start-up company
Our client is a European fintech company that offers a marketplace for cryptocurrencies and shares to private customers. The start-up has grown very strongly in recent years and passed the €1 billion revenue mark last year.
Objective: Establishment and optimization of the procurement department
In order for the company to continue to grow after the start-up phase and to be competitive on the market, it is extremely important to establish efficient internal structures. Of particular importance is the implementation of a professional procurement organization and the introduction of effective processes and methods.
Approach: Organizational development and cost optimization
The first task for our team was to gain transparency over all procurement activities, as these took place decentrally in the departments where the requirements were needed. Based on this analysis, our consultants were able to develop a procurement process. The focus was on the issue of how procurement should be set up to be efficient and fit for the future, especially in view of further growth.
An important step in this process was the establishment of a central procurement function. A CPO was hired for this purpose. This person is now responsible for the cross-functional management of all procurement processes and for the further expansion of the procurement department.
We then analyzed and optimized the largest spend categories in detail. In a fintech company, it is obvious that the optimization of costs for IT needs and services is particularly relevant. Together with the client, we identified new, high-performing suppliers that can not only deliver current state-of-the-art products and services, but are also capable of driving technical innovations in the future. By working with particularly innovative suppliers, procurement becomes a value driver within the company and can actively support further growth.
After the initial phase of negotiations, we handed over the project to the new CPO, who will continue to drive the optimization process with her future team.
Result: procurement fit for the future
- Professional procurement organization
- Role of procurement as a value driver
- Efficient purchasing processes
- Significant savings in IT procurement