Sourcing and Procurement Department Organizational Realignment
Sourcing and procurement were historically not centralized functions for this large nationwide retailer, but instead dispersed throughout each department. The retailer undertook a series of strategic initiatives over multiple years to centralize these functions and bring the resources together into a single department at corporate. They undertook this effort to better meet the needs of stakeholders across the organization and control spending and contract management. Many legacy resources were used to form this initial group and after several of operating in this capacity, the Director in charge of the 25+ person team realized that it was time to take a closer look at the needs of the stakeholders and overall organization. He found that, while the department was very functional, it was also still somewhat reactive and transactional. It was time for the group to evolve into a strategic and proactive team and review how the experience, skills and work practices of his current team members aligned with the more advanced needs of the organization. Additionally, he was looking for ways to streamline the department so he could top grade some positions and bring in additional skills that were needed but lacking.
WR-Martin was engaged to perform an analysis of the department. The project involved development of an employee questionnaire, followed by in-depth interview of each person in the department. We also spent time with each of the managers in the department discussing each team member’s work history, education and job performance and reviewed recent performance reviews. WR-Martin presented a streamlined organizational structure that removed positions that no longer fit with the strategic objectives of the department and more closely aligned certain resources to improve the flow of information and processes with the department and between other departments. The project also identified resource skill gaps that needed to be sourced in an effort to position the department for future success.
The retailer restructured the corporate procurement and sourcing department by executing the requisite personnel actions, planning and executing effective supporting communications and closely managing the changes. Job descriptions as well as roles and responsibilities were redeveloped and clearly documented and salaries were adjusted where necessary. After restructuring, the department functions in a more proactive, strategic and efficient manner and communication within the department and with other departments has improved.