HOLCIM ( Australia ) PTY LIMITED ( Holcim Australia )
rather than just generic procurement skills . A mix of procurement experience and wider business expertise , with a cross pollination of skill sets within the department , ensures the team has the skills to connect with the business .
Holcim Australia primarily has a direct spend base , purchasing directly from suppliers , rather than an indirect spend base via third parties such as consultants – meaning the procurement team needs to really understand the business and its purchasing requirements .
“ They were a fairly new team who were , in some instances , coming into quite a challenging environment because they were taking procurement authority away from some staff and becoming a more integral part of their business processes ,” Irwin says . “ It was crucial that our procurement people really understood the business areas they were working with , in order to gain respect .
“ Despite these challenges our staff engagement score within the procurement department was very high at 80 percent . When we asked the team why they were so satisfied they said it was because they could see the difference they were making and felt like we had their back when they found themselves in a difficult situation . From my perspective , it ’ s much easier to sell yourself to the business when your staff are engaged and love what they do .”
The procurement transformation program coincided with the downturn in the mining sector , which forced the business to refocus its sales pipeline as well as its spending practices . A drop in spending power means a drop in negotiating power , but procurement ’ s closer integration into the business offers more opportunities to deliver value through process improvements , efficiencies and improved supplier relationships .
Centralising and standardising procurement practices , while increasing visibility , afforded Irwin ’ s team the ability to rationalise the supply base and gain leverage with suppliers where practical . The shift allowed Irwin to emphasise the importance of the procurement
100 December 2016