Rethinking Procurement: From insight to tangible impact
Croda International plc, headquartered in Cowick, England, is a leading specialty chemicals company serving the speciality chemicals, life sciences, consumer care, healthcare, and industrial markets.
“When Siemens came on board, Procurement was seen as a failing function and PSU1) as the highest-risk area within Croda´s transformation program. Six months later, Procurement’s reputation has massively improved and the Transformation team are asking whether we can uplift the PSU targets by 40% to help close delivery gaps elsewhere.
I’m grateful Siemens Advanta pursued this with us as genuine partners – their commitment and confidence in the case for change have given us real momentum to take the next step.”
With ambitious cost and growth targets, Croda saw an opportunity to elevate procurement into a more strategic, globally coordinated function. Realizing credible direct-spend savings called for strengthened processes, richer data and the capability to lead a large-scale, multi-phase transformation.
Siemens Advanta ran a Rapid Procurement Diagnostic alongside the executive leadership team - benchmarking procurement maturity against peers and Siemens best practice, sizing the direct-spend savings opportunity across raw materials, logistics and packaging, and designing a multi-phase, ~18-month transformation roadmap spanning organization, people, processes, digital tools and KPIs. Commercials were linked to Croda's savings objectives through a savings guarantee, with Digital Logistics experts adding network-optimization upside.
Gave the executive team a credible, benchmarked business case - more than £20' annualized savings opportunity with returns averaging ~5x the required investment - plus a clear savings methodology. Successful implementation was achieved by Siemens running the PMO for the holistic Procurement Transformation and using senior exec sign-off for the roll-out of the Procurement Target Operating Model.
annualized direct-spend savings opportunity identified
return on required investment
month multi-phase transformation roadmap
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