Scope
Outsourcing – Transformation
Industry
Broadcasting
introduction
National £1bil UK broadcaster benefited from our procurement transformation services to manage in-house buying activity, build a commercial and procurement culture and drive business change until steady state is achieved.
Business Challenge
£1bil revenue British free-to-air public broadcast television channel had an underperforming commercial and procurement mindset, alongside immature finance and procurement technology and process meaning significant value was being left on the table.
An in-house and underperforming procurement function was closed down before 7SS engagement, where we were engaged to undertake a detailed opportunity assessment and target operating model diagnostics.
Our findings identified the opportunity for the client to put in place a transformational project team with procurement, project, industry and category specific expertise to rapidly drive cost savings, operational efficiencies, technology enhancements and embed a greater commercial and procurement collaborative process and mindset from Executive team through to budget owners and operational team members.
Our solution
A specialised project team, equipped with expertise across procurement, project management, and multiple spend categories, was created to act as the client’s interim procurement function for 12 months. The team’s remit was broad, focusing on immediate Spend Diagnostics and Cost Reduction Programmes across high-impact categories (Marketing, IT, HR, etc.), and developing a Procurement Target Operating Model Design. Crucially, the team also led unique value creation initiatives, such as Barter and Contra deals, successfully identifying £8 million in savings in Year 1 alone, all while driving change towards a future sustainable in-house solution.
Project Team
Project team with procurement, project, industry and category specific expertise created to act as the client interim procurement function for 12 months to drive change and work towards a future sustainable in-house solution.
Spend Diagnostics
Assessment to determine opportunities for spend optimisation.
Cost Reduction Programmes
Targeted initiatives across multiple single categories (e.g. Marketing, FM, IT, HR, Professional Services, Travel). Additional saving programmes across company wide topics, such as working capital, headcount, outsourcing, property, business rates, audits, business policies. Savings of £8mil identified in Year 1 alone.
Procurement Target Operating Model Design
Implementing best practice (but right-fit) through the improvement of people, processes and technology.
Barter and Contra
Identifying ways to exchange goods, services or credits with suppliers and clients for advertising placements on Channel 4 platforms.
Outcomes
This comprehensive transformation was executed in three disciplined phases, beginning with a swift 4-week Maturity Assessment to diagnose the client’s existing model and commercial structures. We then moved through a focused 3-week Design Phase to finalise the Target Operating Model. Our team concluded by leading the initial 12-week Implementation, delivering the impact assessment and roadmap for the new, commercially focused structure.
Weekly reporting on all Procurement activity including addressable spend, initiatives, RFx processes, contract management, cost savings and project activity.
Exec team and Board engagements and regular roadshows and business partnering sessions.
Success of service has resulted in additional c-suite engagement and Procurement being openly welcomed to support multiple other value adding initiatives.
Audited cost savings of £1.2m delivered to date with a further £7m identified to be delivered in next 12 months.
Embedding a Commercial and Procurement process and mindset across the business within 4 months of initial 12-month roadmap is setting up the client future in-house procurement function for continued success.