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 INA Procurement with the goal to improve overall efficiency and market competitiveness of the company.

The project is divided into three waves. The first wave was successfully concluded in January 2011. Right after that, the second wave started. It should last until August 2011. During the first wave, focused on the optimization of procurement within the INA, d.d., the planned results have exceeded- achieved savings were greater than planned.

First wave of the project was mainly focused on maintenance and transport.

INA is also starting to implement cutting-edge approaches in procurement. One of the newly implement tools is e-auctioning. This was introduced as a pilot project in order to increase the transparency and competition. E-auctioning allows for real-time online price negotiations while fully ensuring full confidentiality to the bidders. INA is actually one of very few companies in Croatia that uses this channel. Since the pilot project was successful, it will become a standard tool in future procurement processes.
 
In addition, INA has constructed a new approach to suppliers. During the first wave of the PSO project:
  • Over 450 suppliers were invited to participate in the procurement process for the INA purposes
  • 90% of invited suppliers are from the Republic of Croatia and 60% of them had not operated with INA yet
  • With part of new suppliers agreements are already concluded
     
Unlike the first wave, in which the emphasis was on the optimization of procurement within the INA, d.d., in the second wave the focus will be on achieving the same results in our subsidiaries, companies members of the INA Group.

All questions regarding Procurement spend optimization project or potential supplier application form, please send to pon@ina.hr.