The 2008 credit crunch trailed major macroeconomic changes in its wake, including extreme fluctuations in raw material prices, and many of Post Danmark’s suppliers benefited from lower prices. The challenge was now to figure out how Post Danmark could benefit from these savings.
Careful analyses were carried out to get the facts straight. Post Danmark’s strategic procurement staff and Valcon’s consultants worked closely together and had talks with 20 major suppliers. The second wave included +120 suppliers, and the objective was to achieve here-and-now savings but also to develop new competences and embed them in the Post Danmark procurement organisation.
Three months of work paid major dividends: Post Danmark achieved annual savings in the double-digit million range. In fact, Valcon’s assistance was fully funded after the first few weeks. What is more, the process gave the procurement department a new skill set that allows them to secure similar savings on their own in the future.
In three months, we have taken an in-depth look at procurement volumes worth billions and saved many millions by getting better prices.Carsten Christiansen Head of Service Centre, Post Danmark
Savings in the double-digit million range
A significant increase in procurement staff’s competence level
Improved dialogue with the organisation and suppliers