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Procurement Spend Optimization Project/PSO

In February 2010 INA launched Procurement Spend Optimization project. The project was initiated in order to enhance transparency and optimize the processes in procurement with the goal to improve overall efficiency and market competitiveness of the company.

The aim was to achieve significant savings in rapidly changing business environment, to institutionalize and expand procurement approach to INA Group level.

Originally, PSO project was planned in three waves, and fourth wave was added later on INA's management request. Only INA was involved in first project's wave, while in other waves focus expanded on subsidiaries and one joint venture. 

In four years, while the project lasted, excellent results were achieved, above all expectations.
Besides financial savings, concept and approach to procurement processes was significantly changed.

Cooperation with new suppliers was achieved, monopolies were cracked, number of direct deals was decreased, technical specifications were challenged by thinking out of the box, more competitive contracts with better prices were concluded and e-auction was implemented as negotiating tool.

PSO in numbers:

• 650 new potential bidders identified
• 350 tenders conducted
• 650 contracts concluded
• More than 55 technical specifications fully revised
• More than 100 technical specialists involved