InterContinental Hotels Group transformed its procurement function by reshaping its structure under ‘project Egypt’.
Purchasing at the hotel chain, which also owns the Crowne Plaza and Holiday Inn brands, had previously been outsourced to a third party but “there was a perception within IHG that procurement was not part of the organisation because it was mainly made up of outside employees”, CPO Annie Brown told Supply Management in an interview.
The aim of ‘project Egypt’ was to change the structure from a top-heavy, overbalanced departmental structure with too many senior staff to a pyramid-shaped structure which was better proportioned.
Procurement estimated it delivered more than $40 million in annual benefits to IHG in 2014.
☛ A full interview with Annie Brown about how IHG transformed its procurement operations will appear in the February edition of Supply Management, published this week.