How Adeo developed indirect procurement performance visibility with SpendHQ
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Key Facts
- 3rd largest company worldwide in the “do it yourself” home and lifestyle market
- $31.7 billion in revenue.
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Challenges
- Position and gain recognition of Indirect Procurement
- Align the buyer community
- Build a common system of record for Procurement.
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Benefits
- Improved visibility of Indirect Procurement’s impact across all business units
- Common management of Procurement performance, reporting, and KPIs for the entire group.
Adeo is the third-largest company worldwide in the DIY market. Adeo owns 14 brands, including Leroy Merlin, Bricoman, Weldom and Zodio.
The Procurement group at Adeo launched a major transformation project: the Galileo program to transform Finance, Management and Indirect Procurement functions. The goal was to structure Indirect Procurement through the definition of key processes. In addition, the team was responsible for the development and positioning of Indirect Procurement in different business units.
The primary objective of the Procurement Transformation was to generate 100 million euros in P&L savings by the end of 2020.
Said Adeo’s Indirect Purchasing Leader & Business Domain Leader: “It was necessary to provide the various platforms and Indirect Procurement Departments with a tool able to give more traceability and visibility.” To support this approach to consolidate Indirect Procurement and optimize costs, the group selected SpendHQ (named Per Angusta at the time) to support project management processes and procurement performance monitoring.
As the implementation continued, the solution quickly became a strong lever for improved communication about Procurement within the company. The tool helped provide various department leaders and users with a daily management dashboard for buyers. In addition, it enabled the global leadership team to have a strategic and global view of projects being complete and requiring attention or approval. The visibility into these achievements and milestones helped get the lines moving internally and improve productivity too.
What Adeo says about SpendHQ
“[SpendHQ] is the referring tool to validate procurement actions. It has become a ritual during procurement committees to follow the projects’ progress and procurement performance monitoring.” – Indirect Purchasing Leader, Adeo
An Agile and Flexible Solution
The tool is now implemented for 40 buyers in 9 countries. In addition, there is a set of readers and validators from the Finance and Management Control departments.
“Today, the biggest challenge of our digital roadmap is to get flexible. Agile solutions like [SpendHQ] give us the freedom to change according to our needs. It covers these different criteria: the solution is modular, has no impact on the information system, and is dedicated to a segment. In addition, the solution is easy and quick to implement, and optimized in terms of the project cost.”
The Adeo Procurement team is ambitious with regard to the natural and thoughtful collaboration between Procurement, Finance, and Management control. The goal is to provide greater visibility and accountability for the various stakeholders who benefit from working with Procurement. This collaborative effort is achieved through organized coordination and real-time interactions, especially with Management Control. Best of all, the Adeo team is using SpendHQ to develop and build a community mindset.
“Those who used to work on an Excel file are not disoriented, and for people new to Purchasing, the ease of use is not in dispute. This makes it possible to both exchange and standardize uses. On a daily basis, the solution is used to facilitate team meetings.”
Editor’s note: SpendHQ’s procurement performance management solution used by this customer was originally named Per Angusta, with the renaming following Per Angusta’s merger with SpendHQ in July 2022.