Privatin provided the primary support on Category Management design and implementation in the Federal Acquisition Service and Government-Wide.
In this endeavor, Privatin has supported one of the largest Government-Wide business transformations ever. Privatin worked with agency leadership to establish a vision, strategy, and five-year roadmap by providing best practices and guidance from CM experts and facilitating collaborative workshops. Privatin built a CM operating capability by developing a common policy, governance model, set of processes, and playbook of supporting guidance, tools, and templates. Privatin then embedded CM capability in the business through training, mentoring, and support of category teams.
With Privatin support, FAS and Government-Wide CM went from no strategy and structure to executing a multi-year plan; from no category structure to a reliable spend analysis platform; from no common CM understanding or methodology to a standard operating model; and from no PMO to a PMO that is working regularly and productively with category teams.
Privatin supported the Federal Strategic Sourcing Initiative (FSSI) for Human Resource Services and Training, Office Supplies, Janitorial Supplies, Building Maintenance Operations, Furniture, and Maintenance Repair and Operations (MRO) Supplies with services ranging from conducting a full strategic sourcing process on select categories to assisting in spend analysis, opportunity identification, market analysis, creation of commodity profiles, development of sourcing strategies, savings calculations, and strategic sourcing execution on other categories.
In addition, Privatin supported stakeholder management including developing business cases and Key Decision Point (KDP) deliverables for the Strategic Sourcing Leadership Council (SSLC).
Federal Strategic Sourcing Initiative (FSSI)
GSA - Federal Government
Category Management (CM)
Selected examples of recent Privatin Consulting projects in the public and private sector.
TSA - Spend Analysis and Category Strategy Creation
The Privatin team conducted a full spend analysis for TSA to define enterprise-wide spend. The process included extracting systems data, cleansing and normalizing vendor names, and enriching the data to identify organizational spend components. The team used contract data from federal databases, TSA procurement systems, and government P-cards to classify approximately $1.6 billion of spend into over 50 market-based categories.
Using this data in conjunction with external benchmarks and extensive supply market research, the team evaluated all potential performance levers to achieve category cost savings. The team identified six strategies across IT Services, Personal Computers, and Software aimed at: reducing total category cost, optimizing customer demand within the agency, improving vendor management, and adopting category-specific best practices for strategic sourcing. The initial six strategies in those three categories identified a savings opportunity of $21.2 to $40.6M to the agency.
Throughout the engagement, Privatin collaborated with procurement and program office leadership to validate data findings and all sourcing strategies.
GSA needed expertise to conduct detailed business process analysis, market research, and develop a business case for their asset management systems and software modernization effort.
Privatin engaged key stakeholders in the development of detailed current and future state business process documents that clarified how the current system(s) function and communicate and identify existing functionality gaps and inefficiencies. Privatin used this output to create the vision for a future system workflow that addresses requirements and meets the agency’s vision for scaling the future system.
Privatin conducted extensive market research, including web and in-person vendor demonstrations, vendor/solution segmentation, shortlisting of suppliers, gathering of pricing models, and development draft requirements and a Concept of Operations. Privatin used this research to identify the best-fit solution for the agency and develop a business case for the solution that identified cost-benefit tradeoffs. Privatin used a blend of qualitative analysis and financial analysis to identify a solution with significant positive value for the agency.
GSA - Asset Management Solution Design
IRS - Strategic Sourcing Support
Strategic Sourcing was mandated by the Office of Management and Budget (OMB) in a May 20, 2005 Memorandum entitled “Implementing Strategic Sourcing.” In order to achieve the desired outcome it was critical to analyze each organization’s spend and using this information make informed business decisions about how to acquire commodities and services more effectively and efficiently.
Privatin applied their Strategic Sourcing methodology to implement savings in multiple sourcing categories. The Strategic Sourcing program engaged senior leadership team in the governance of the program while fostering strong cross-functional collaboration.
As a result, the agency has captured over 22% in spend savings across the categories that were Strategically Sourced. In addition, these projects were completed in record time, taking less that half the time of similar past projects. Lastly, the project enabled the increase in the award to small businesses.
Privatin assists in improving the organization's global materials management operations. The engagement began with a detailed assessment of current operations and capabilities.
Privatin’s findings were that the client’s material management operations were inefficient, sometimes ineffective, lagged behind the operations employed by a similar organization, and were creating serious issues for the organization as a whole. Privatin developed detailed recommendations to improve the client’s materials management operations.
Based on our finding, the client agreed that drastic changes should be made. The client elected to implement a materials management solution designed by Privatin and engaged Privatin in a multi-year contract to lead the implementation.
The resulting organization, process and technology transformation has resulted in nearly a million dollars in savings and cut transaction cycle time by more than 50%.