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Global FT100 distribution business

When a major distribution company approached the Insider team for their procurement needs, it was our turn to deliver.

The Brief

FT100 distribution business

Our client was a global FT100 distribution business with over 800 UK locations and 14,000 staff.

Trading conditions had become more challenging in the UK and the business needed to rapidly reduce the costs of the indirect supply chain.

1

Review cost data and scope out potential opportunities

2

Create a procurement plan and socialise this with the management team and functional leaders

3

Execute the procurement plan securing at least £3m annualised benefit

4

Track the benefit into each of the operating units and brands.

Challenges

Understanding the constraints

With the business under trading pressure the management team had set in motion improvement projects in all the key functional areas of the business. This created considerable complexity in planning and delivering changes to procurement due to the following:

Stakeholders had limited time to support the project as they were supporting multiple change initiatives simultaneously.

The clarity on cost and output which emerged as part of the project highlighted operational issues.

Few systems were in place to control demand and lock down savings.

Outcomes

Results and Approach

The Insider team worked closely with the business and secured in excess of the £3m annualised savings which the client was able to track into the P&L.

£3Million+ Of savings in a single year

Discovery

The clarity on cost and output which emerged as part of the project highlighted operational issues.

Strategy

Created a procurement strategy to unlock the full potential of the category and agreed with the key stakeholders

Delivery

Engaged the supplier base and negotiated agreements

Track

Worked closely with the finance team to track benefit post implementation ensuring maximum P&L benefit.

Inside Track

Minimising Impact

Procurement projects can quickly eat up stakeholder time which can slow progress and frustrate the management team, especially when there are multiple projects in flight. The Insider team overcame this through:

Expert Resource

Using highly qualified experts with deep
experience and insight into the categories.
This reduced reliance on stakeholders
allowing them to feel involved but without
requiring them to undertake
significant additional work.

Simple Solutions

Focusing on making the solution fit the client
and understanding that complex ways of
working or change programmes were unlikely
to be effective in a fluid environment.

Management Team Engagement

Working closely with the senior team
to raise issues early and provide
them with impartial advice
to help them make decisions.

Featured insider

Susan Randall

Susan Randall is a FCIPS procurement professional with extensive experience in senior procurement roles. Her expertise includes procurement strategy, spend analysis, contract negotiation, commercial training and tender response support.

Experience

Susan has worked with the following organisations

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