CASE STUDY

Procurement Transformation and Savings

Our client, a rapidly growing FMCG brand with manufacturing facilities in the UK, Morocco and China, had two specific objectives:

– Establish a strategic framework with improved procurement processes and deliver financial reductions in their cost of goods.

– Deliver a sustainable solution to enable better sourcing that would support the new product development and innovation strategy of the group.

The procurement team operated in a very reactive transactional manner due to a lack of understanding of their role within the organisation and the strategic leadership. Day-to-day supply chain challenges meant that they were periodically unable to meet the fulfilment needs of the business.

ArcBlue was engaged to assist the client to understand the China supplier market, define their needs and establish a supplier base that could meet the future needs of the business.

The procurement team and internal stakeholders were guided through an extensive China strategic sourcing approach that challenged the current assumptions and broadened their knowledge of the supply market capabilities.

A formal project management approach was used to engage with stakeholders to understand their requirements and keep them informed.

ArcBlue delivered a proven best in practice approach to deliver electrical product sourcing.

The resulting sourcing exercise delivered £1m in annualised savings, allowing for a complete family co-ordinated re-design of the electrical appliance range.

The sourcing strategy has delivered a long term two supplier solution that enables both immediate improvements in product quality and capacity at lower risk with a longer-term new product innovation capability.

Supply chain management issues were solved by enhancing the forecasted demand data and enabling decision making capabilities in the Far East office.

Need help to identify and deliver savings?

ArcBlue’s Savings & Opportunities programs follow a structured methodology beginning with cleansing and categorising spend data and finishing with benefits realisation and reporting. We provide embedded teams to work with the client to fully understand and cleanse data and to create opportunity dashboards to visualise and prioritise opportunities. We then work with key stakeholder groups to validate the opportunity before creating a ‘wave plan’ to drive savings through the organisation.

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