Developing the sourcing and procurement strategy for FMV.
FMV is responsible for purchasing material and services for the Swedish Armed Forces and a number of other governmental bodies. In recent years the client’s supply chains have become more cumbersome and difficult to manage, which has led to an increase in late and missed deliveries, due to financially and operationally unstable suppliers. To break this trend of deteriorating performance and prevent disrupted deliveries of mission-critical material, FMV wished to gain a better understanding of the health of its suppliers. Risks had to be assessed and countermeasures needed to be developed in case of negative outlooks. FMV’s environment is highly regulated, which calls for specific solutions aimed at the public sector, taking into account all aspects of public procurement legislation.
What we did.
Working together with the client, we developed a generic methodology for auditing entire supply chains or specific suppliers. This covered financial, operational and strategic aspects and took into account a wide range of qualitative and quantitative measures to create a multidimensional image of risks associated with doing business with a particular counterparty. The aim was to create a methodology that was complex enough to handle a diverse range of issues, yet simple enough to be implemented in the client’s daily routines. To ensure this, a full scale demonstration was carried out on one of FMV’s main supply chains.
A tried-and-tested methodology was developed and gained the support of all personnel, providing a deeper understanding of the supply chain audited within the demonstration phase. The project was praised by FMV as an eye-opener and new way of working with supply chain management in a public setting.