FMCG

Fast Moving Consumer Goods

Soft Drinks manufacturer operating within North America and the UK
$1.2 billion of external expenditure including $200 million of indirect expenditure
Traditional and tactically led approach to procurement
No strategy, policy or supporting processes evident
Poor process control across indirect expenditure leading to poor outcomes and an uncontrolled supply base
Requirement to reduce overall cost base, improve cost control and improve the management of complex commodity categories

Structured assessment and diagnostic of the total procurement capability
Implemented the recommendations and provided resources to support the team in delivering opportunities to the management of key categories in direct and indirect expenditure
Developed policies, processes and proposed controls to the procure-to-pay process
Training to develop and enhance the skills within the team

Reductions of over $20m or 20% annualized improvement for supported categories and a ROI of over 10:1
Improved organisational alignment and delineation of sourcing role from materials management Consistent methodologies, tools and processes adopted across the procurement team to support better decision making
Effective control and influence over indirect expenditure