How Adeo developed Indirect Procurement Performance visibility with Per Angusta
The advantage of Per Angusta solution is that it’s made for everyone: whatever the type of organization, or functions involved - ie Procurement, Finance, Management Control, internal stakeholders - and no matter level of maturity of the people using it.
Business Director - Galileo Indirect Procurement
- Key facts
- 3rd largest company worldwide in the "Do it Yourself" market
- European leader
- €23.1 billion sales in 2018
- 452 million customers in 15 countries
- 800 sales point
- 114,000 employees
- Position and gain recognition of the Indirect Procurement function
- Federate and align the buyer community
- Build a common reference system for Procurement practices
- Improved visibility of the Indirect Procurement function and its business impact across nine countries for all business units
- Developed a common basis for measuring and managing Procurement performance
- Implemented a gradual harmonization of reporting and KPIs for the entire group
Procurement: A function in Full Acceleration
Adeo is the third-largest company worldwide in the DIY market. Adeo owns 14 brands, including Leroy Merlin, Bricoman, Weldom and Zodio.
In 2016, 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.
This expansion and effort to sell the impact and value of Procurement led to the creation of Procurement platforms and departments in France, Russia, Brazil, Poland, Spain, Portugal and Italy.
The primary objective of the Procurement Transformation (part of the Galileo Program) was to generate 100 million euros in P&L savings by the end of 2020. To support this approach to consolidate Indirect Procurement and optimize costs, the group selected Per Angusta to support project management processes and Procurement Performance Management (PPM) monitoring.
A Real Visibility on Indirect Procurement Actions
The group selected Per Angusta through a three-month Proof of Concept (POC) across four business units in France, Brazil, Russia, and Poland. This phased approach helped to quickly demonstrate the ease of use and implementation of Per Angusta. Once the POC was complete, the group began a progressive deployment of Per Angusta to other countries.
« In a context of acceleration and increasing power of Indirect Procurement, it was necessary to provide the various platforms and Indirect Procurement Departments with a tool able to give more traceability and visibility. » Paule Teissier, Business Director Galileo Indirect Procurement.
As the implementation continued, Per Angusta 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, Per Angusta 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.
An Agile and Flexible Solution with a New Sense of Freedom
Per Angusta is a solution that federates everyone at Adeo. 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. In the short term, the number of users in Per Angusta is expected to grow in terms of buyers and internal stakeholders.
« Today, the biggest challenge of our digital roadmap is to get flexible. Agile solutions like Per Angusta give us the freedom to change according to our needs.
Per Angusta 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. Project management is simple and does not create any dependency with the editor. » Paule Teissier, Business Director – Galileo Indirect Procurement
The Adeo Procurement team is now 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 Per Angusta to develop and build a community mindset.
« The advantage of Per Angusta is that it’s easy for everyone to use and adopt; regardless of department, role, or background with technology. » Paule Teissier, Business Director – Galileo Indirect Procurement
Today Pierre-Michel Guyomard is visiting the different Business Units to raise awareness about data and its use.
« 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.» Pierre-Michel Guyomard, Project Manager – Indirect Performance Management
« For the Global Leader Performance, Per Angusta is the only referring tool to validate Procurement actions made. It has become a ritual during Procurement committees, in order to follow the Projects progress andProcurement Performance monitoring. » Paule Teissier, Business Director – Galileo Indirect Procurement
In the end, the tool benefits from a strong sponsorship and the rules of the game are well defined. All figures and KPIs defined must be based on what has been recorded in Per Angusta, otherwise they are not taken into account.
The Adeo team is narrowing its goal to generate 100 million euros in P&L savings by the end of 2020. In addition, Adeo is building a more collaborative community of users from across the entire company.
« Ultimately, we aim to harmonize practices, languages, reporting and KPIs. And more generally, the visibility and recognition of the Indirect Procurement function. » concludes Paule.Download the PDF