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Regional bank external spend reduction
A regional bank had not looked at its external spend base in some time and requested assistance from PCG. PCG evaluated the procurement capability of the bank and identified opportunities that delivered $6m per annum in savings.
A national financial services provider was aiming to deliver significant cost reduction across all of its operations.
PCG were invited to review the external spend to identify sources of value as well as detailing the step changes required in internal capability to deliver on these initiatives.
In five weeks, PCG examined, identified, tested and quantified opportunities across the client’s external spend base.
The external spend was categorised to a common schema which was used to identify key areas of external spend.
Target spend areas were then reviewed in depth with stakeholders and opportunities identified using PCG experience, industry benchmarks and internal knowledge.
PCG identified twenty-seven cost reduction opportunities with an estimated annual value to the client of $35m+.
These initiatives included improved spend management practices across areas of the client’s external spend base as well as selected outsourcing of internal functions.
Within the first four weeks of the implementation phase the client was able to deliver initiatives with savings valued at $6m per annum.
Opportunities ranked according to size and ease of implementation