Many growing organisations are realising the growing importance of procurement transformation. Taking control of indirect and direct spend gives the whole business a better competitive edge with cost savings and better spend visibility.
Flybe, one of our customers and the largest regional airline in the UK, has undergone an extremely successful transformation of its procurement function, with a combined spend of several hundred million annually now going through their eProcurement solution. The transformation has been embraced by the whole business and not just procurement, showing how a truly integrated approach to digital transformation can pay huge dividends.
Faced with a growing number of both holiday and corporate travellers, Flybe has recognised the growing importance of procurement across its operations and has overhauled outdated processes to create efficiencies and increase the value of its services to its customers.
“We’ve undergone quite a significant transformation, a part of which has been to centralise procurement,” explains Director of Procurement & Finance Business Partnering, Richard Young.
“It’s moved away from individual departments doing their own buying to a much more strategic function. We are now involved in all activities relating to supplier expenditure, be IT or marketing, engineering or maintenance, becoming a business partner to all our internal stakeholders.
“Technology has really been at the heart of these changes, and it’s been an enabler to help us improve delivery,” he adds.
The company’s three-year transformation has impacted all areas of the business and has also strengthened the airline’s relationships with suppliers.
“This has allowed us to mitigate any potential risks on the supply side whilst at the same time making sure we are operationally efficient,” says Young.