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Development of a Benefits Tracking Methodology

Industry - Government/Public Sector

Issue

  • This large Government department was looking to transfer (ie outsource) the management and risks of the supply chain in relation to a significant level of purchase spend for a number of commodity item groups
  • As part of this process they had commissioned an Activity Based Cost (ABC) model, but in addition to this model required the development of the process through which the benefits of the transfer could be monitored
  • Additionally following a change in resourcing training in the use of the ABC model was also required

Solution

  • Through facilitated workshops and structured management interviews Key Performance Indicators (KPI) for the business were identified and agreed
  • Development and delivery of training materials in relation to the use of the ABC model and its role within the commodity outsourcing process

Benefits

  • Identification of KPI against which the business could measure itself
  • All ABC model users trained in its operation

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