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Exceeding

BGL Group

Creating a strategic procurement function

About BGL Group.

BGL Group is a leading digital distributor of insurance and household financial services. The group comprises 7 different insurance businesses, including the market-leading ‘Compare the Market’ website.

Overview.

BGL approached eXceeding at the point that they had decided to install a new procure-to-pay (P2P) system and it was the perfect opportunity to review overall strategy and process and procedures.

They had no formal procurement strategy in place and only one internal procurement resource, so they lacked the internal capacity or category knowledge to deliver a formal strategy.  They sought help from eXceeding to develop the procurement strategy and detailed processes and procedures for the P2P system they had selected.

Whilst working with BGL on the development of the strategy, we identified an opportunity to carry out a spend review with the big four accountancy companies they were using.

We completed the spend review and uncovered an opportunity to standardise rate cards and significantly reduce costs.

The challenge.

It was identified that there were 3 key challenges, that needed to be considered:

Strategy and process
An approach that would feed into the new P2P processes and procedures was key

Internal resource and capacity
Specialist knowledge was needed to detail best practice processes and procedures

Control vs. culture
Balance between consistency whilst maintaining the existing culture was key

The solution.

eXceeding assisted BGL with a procurement strategy as the group looked to install a new P2P system, as well as assisting them in reviewing their spend with the big four accountancy firms.

  1. Working with the Group Head of Finance, we developed a procurement strategy to ensure consistent processes were followed across the group, but with the flexibility for each business to continue to operate independently.
  2. eXceeding’s strategic approach was designed to assist with items such as; on-boarding risk mitigation requirements, developing a procurement policy and looking at team structure and upskilling.
  3. Whilst developing the strategy, it was identified that the group had some concerns about its spend with the big four accountancy firms. eXceeding proceeded to conduct a spend review, the outcome of which was to renegotiate existing rate cards as well as to introduce new specialist firms that generated considerable cost savings.

Highlights.

7-month
contract term

Best-practice
procurement policy

New strategy
consistent, but flexible

Cost-savings
through contract renegotiation

The future.

BGL now has an improved procurement function and a formal strategy in place, which provides a consistent approach to procurement across the group, but is flexible enough to allow each business to operate independently. The new P2P and enabling processes and procedures have streamlined internal activities and governance.