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CLIENT
Large petrochemical company
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BACKGROUND
Expansion of business of the company, change of external conditions (increase of sanctions pressure) and appearance of new challenges (transition to new digital tools, reconstruction of logistics network, import substitution, etc.) This led to a significant increase in the number of units in the corporate centre and a corresponding increase in the number of staff. Number of corporate center exceeded industry benchmarks
The Management Board of the company decided to launch a project to improve the efficiency and reduce the number of administrative and management personnel (e.g., hypotheses on the presence of low-pitch functionality in the corporate center, high share of manual operations, etc.) -
SOLUTION
The project consisted of three major areas:
Photography of the working day, development of efficiency initiatives and dissemination of best practices in the Procurement Function
Development of measures to improve the manageability and alignment of the organizational structure of the corporate center in accordance with the principles of organizational design. Launch mechanisms to prevent undue expansion of the corporate centre
Diagnostics of the S&OP end-to-end process on the example of a business in the Turkish market. Development of tools based on MS Excel for automation of through process steps: volume planning, scheduling and dispatching -
RESULTS
The non-earmarked functionality (~20%) has been removed from the corporate center in HABs with the labor intensity of 7 FTE. Inefficiencies in cross-functional processes were eliminated: consolidation of procurement for discounts, implementation of customer rating to stabilize the planning process and execution of procurement requests. Coordinated effect of the implementation of measures - 20 FTE
The hierarchy level 7 in the corporate center has been completely eliminated. The number of micro-teams was reduced by 40%, the number of staff positions in the corporate center was reduced by 10%. Implementation of regulations with mechanisms to prevent undue expansion of the corporate centre
Interim solutions have been developed for the Turkish track of transactions and available balances, which will be transferred to target systems and replicated to other directorates and markets.
