A $30B global electronics manufacturing services provider was experiencing fraud/risk issues with international third parties, related to improper buyer-supplier dealings across various locations and categories. A&M was engaged to conduct an assessment and gap analysis of current state practices and to make improvement recommendations to mitigate the risk.
A&M developed a future state Indirect Procurement Organization to manage $2.4B ($2B Opex, 400k CapEx) addressable spend for Strategic Sourcing and Supplier Management including best practice auditable processes, reporting transparency and governance, new organization model with roles and responsibilities, and KPI’s. Additionally, A&M visited client locations in China, Mexico and Romania and interviewed 120 interviews, 82 business processes and controls during one week assessments of practices.
Results included the identification of 110 “shadow procurement” resources and the creation of the business case for centralized procurement. Lastly, A&M helped establish an independent audit group to reduce the risk of fraud in the future by implemented best practice control points.