Making your organisation fit for purpose

Identifying savings of €7 million in four months

Rabobank Group, a financial services company serving more than nine million private and corporate customers, needed to improve its IT department in the face of increased scrutiny from its internal customers and senior stakeholders. The department needed to make its performance and the cost of its services more transparent, so Rabobank asked PA to devise a practical improvement plan, including a set of measures to help the IT department quantify and demonstrate better performance and perception within the business. 

PA developed a set of tools for the IT department to analyse the service breakdown and improve cooperation internally. These tools consisted of a redefined service framework, up-to-date service administration and a new way of service reporting to provide the required transparency.

Within just four months of the project going live, Rabobank had identified             €7 million in cost savings, as well as noticeably improved transparency and increased satisfaction with the IT department from its customers and stakeholders.

Saving double-digit millions of euros across an entire product life cycle.

Leading global automotive supplier MAGNA STEYR asked PA to help draw up a cost reduction programme for the manufacture of a coupé on behalf of Peugeot.

For the first time, MAGNA STEYR had taken over complete responsibility for the development, purchasing and production of the specific vehicle components, accounting for 40 per cent of the material cost. The cost reduction programme needed to close the gap with the originally defined target costs for the vehicle components.

PA worked with the project team to analyse specific parts of the vehicle, identify savings potential and optimise the supply chain. 

Together with PA, MAGNA STEYR saved double-digit millions of euros across the lifespan of the car, both in terms of parts and machinery and development costs. The consulting costs were recouped within the first six months across a relatively low volume of cars. 

Helping the Foreign and Commonwealth Office deliver £8.1 million of savings in its procurement operation

The UK Foreign and Commonwealth Office (FCO) has a global procurement spend of £730 million. Managing this spend and generating savings was challenging, because a high degree of budgetary and decision-making control had been devolved to front-line managers, and over half of the FCO’s procurement expenditure is managed by overseas posts. The FCO asked PA to conduct a strategic review of its global procurement operation and implement a programme to deliver savings. 

PA identified and implemented a series of quick wins, then led an opportunity planning workshop to pinpoint further savings. As well as project management guidance, we gave hands-on
support in other areas, providing a savings and progress tracking toolkit, expert advice on analytical techniques and links to potential collaborating parties across the public sector.

To find out how PA can make your organisation fit for purpose, please contact us now.