Financial services and insurances
Expert know-how from the financial sector combined with our consultants’ know-how about the finance and insurance industry is our starting point for the analysis of your procurement organization and your supply chain management.
Our analysis of the financial services and insurances industry
Over the past few years, a lot of service providers in the finance and insurance industry have realized that an upturn in profit with, in many cases, stagnating sales figures can no longer only be achieved by winning over new customers. Rather, costs must be cut in companies on a sustainable basis. While savings potential by reducing headcount and initiating restructuring measures has meanwhile been fully tapped in many companies, savings potential is often still unused in procurement. But experience shows this is especially hindered by the fact that in many cases, and particularly for direct product groups (e.g. appraisers for indemnity insurance), departments purchase outside of the purchasing department (maverick buying). This becomes more problematic considering that significant savings potential especially often lies hidden in direct procurement with financial service providers.
Automation of procurement
We’ve been working for well-known customers from the finance and insurance industry for more than 10 years now. In the process, we have successfully conducted a wide array of procurement projects to improve purchasing conditions and to further develop the procurement organization. Here’s a case example concerning this:
A major insurance group enlisted the specialists of HÖVELER HOLZMANN CONSULTING to design the concept for a new procurement strategy. In doing so, the aim was to realize savings and optimize procurement processes within the scope of the corporate strategy. After the team of consultants conducted a strengths and weaknesses analysis, specific levers to achieve the goal were defined. Thanks to enhanced demand management, costs, for example, for products and services were successfully reduced. "Automation" of procurement by using e-sourcing tools and electronic supplier management led to a significant upturn in performance of the procurement processes.
Not only in this case example do we develop concepts to optimize purchasing departments in collaboration with the persons in charge of procurement or to define – taking into account requirements placed on best-in-class procurement in the finance and insurance industry – a group-wide procurement strategy. At the request of our customers, we’re also glad to assist implementing the jointly worked out ideas and concepts..
Levers for the project’s success:
- Determination of a group-wide procurement strategy
- Implementation of a comprehensive demand management to optimize specifications and reduce volumes (i.e. demand) for indirect goods/service groups (such as print, temporary work)
- Implementation of an electronic tender and negotiation tool
Results of the project:
- Reduction and prevention of material and service costs
- Process costs for internal and external processes were reduced significantly