Organization Restructure
An energy organization with $5+ billion in managed spend had failed multiple attempts to build an effective category management function. McDaniel+Cullen conducted a spend analysis, redesigned the supply chain organization, and developed a prioritized opportunity roadmap — resulting in senior-executive-supported org change and +$200 million in sourcing and category management capture.
Situation
This energy organization managed more than $5 billion in spend across multiple product lines and geographies, yet had failed at several previous attempts to install an effective category management team. Operations were not seeing the benefits that category management is supposed to deliver.
Repeated unsuccessful attempts had created skepticism inside the business about whether category management could work at all. The challenge was not only to redesign the organization, but to do it in a way senior leadership would support and operations would actually adopt.
M+C Approach
McDaniel+Cullen started with a rigorous analysis of spend and opportunities to establish a fact base everyone could trust. From there, the team conducted an organization assessment and recommended a redesign that addressed the structural reasons the previous attempts had stalled.
M+C identified and prioritized the highest-value opportunities, built an implementation roadmap, and communicated the new plan directly to the COO to secure executive sponsorship. Engaging senior leadership early was central to making this restructure stick where earlier efforts had not.
Results
The new organization is in place and supported by senior executives, and the client is capturing +$200 million in sourcing and category management value.
Key Outcomes
- Spend and opportunity analysis across $5B+ in managed spend
- Redesigned category management organization adopted by operations
- Executive sponsorship secured through direct engagement with the COO
- +$200 million in sourcing and category management value being captured
- Prioritized opportunity roadmap for sustained value capture
Client Feedback
"I had worked with Mark when he was in an industry role before he started his consulting practice. I trusted him to assess my Supply Chain organization to improve our category management process and priorities roadmap. Having worked with him and seen first-hand his Supply Chain credentials made M+C an easy choice as a trusted advisor.