procurement optimization

Zorg en Zekerheid is a regional health insurer close to the people with almost 500.000 people insured. Zorg en Zekerheid provides the right care in the right place to the people who have put their trust in them. They are actively engaged in social initiatives that make the world more social and therefore healthier.

The Challenge

For a health insurer like Zorg en Zekerheid it is critical to have a solid process in place to source new products and services and effectively manage them during the operational stage of the arrangement. As an insurer the process must be compliant with The Good Practice for Outsourcing, issued by the Dutch Central bank.
After a restructuring and a review of their procurement function, Leadmark was invited to assist them to develop their procurement function and contract- and supplier management capabilities. The central question was: develop a contract and supplier management police and supporting way of working to allow the new team to provide a valuable contribution to the organization’s objectives in compliance with regulatory requirements.

The approach

The first step was to take a good look at what was already in place and the work already done. Clearly, we were looking for a solution that fits the organization and builds on what’s there. In consultation with the team it was decided to work in three parallel tracks: a) develop a policy document for contract- and supplier management, b) develop a risk based model, allowing the organization to decide on the right control measures for a contract and c) align critical stakeholders to operationalize the new ways of working. During the whole project, Leadmark worked in close collaboration with the procurement team to give advice and support where needed.
This approach allowed the organization to learn, work on the policies and procedures while also seeing it work in practice and adjust where needed.

The Result

At the end of the project the organization had made some big steps and the new team was able to apply the new way of working in compliance with regulatory requirements. Leadmark delivered an accepted supplier management policy document, a risk inventory model that allows the organization to assess engagement risks and apply the appropriate control measures. For the critical contracts, contract owners are appointed who play an active role in the new service level management process. With all this, Zorg en Zekerheid has significantly improved the overall quality of the procurement team in particular and the organization as a whole.