DONG Energy is Denmark’s largest power producer and one of the leading energy groups in Northern Europe.
Following years of growth, the group’s business comprised a wide range of activities, including oil and gas exploration, wind power production and electricity supply. To make sure that its employees across these varied operations were buying items in a consistent way – without risk of losing negotiated savings or breaching regulatory requirements – DONG Energy wanted to introduce a company-wide procurement process.
Drawing on our procurement transformation expertise, we worked with DONG Energy to create a standard platform for controlled and compliant day-to-day purchasing. By the end of the three-year project, we had established a single procurement policy that was endorsed and enforced by all business units. We also established a completely new company-wide purchase-to-pay (P2P) regime comprising professional purchasers, standardised P2P processes, KPI measurement and reporting, and a process to address non-compliance.
At the same time, to ensure DONG Energy’s employees were engaged in the transition, we worked closely with senior management in each business unit and communicated updates to 6,000 employees. We also appointed and trained 80 purchasers and set up a procurement support centre with eight employees. All of this was done without DONG Energy having to invest in new IT or additional staff.
Following the introduction of the new P2P platform, company-wide procurement is in compliance with policy and process, and the company gets the benefit of negotiated cost savings.