New strategic sourcing function delivers 17% cost reduction in first year

Posted on April 21st, 2014 by

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SpringTide were recently engaged by a FTSE 350 company providing refrigeration services to leading UK supermarkets: the objective being to create a Strategic Sourcing function to improve category management and deliver cost reductions.

SpringTide worked collaboratively with the Head of Procurement at the company to gain support from the Main Board for the project and to create a viable business plan.

Ensuring stakeholders engagement throughout the project, we then worked quickly to set up the function. This included:

  • Building a high-calibre team, identifying appropriate internal resources and recruiting additional expertise.
  • Putting in place all necessary practices and procedures
  • Introducing measurement criteria for savings and transformation
  • Working with buyers to identify and deploy appropriate category strategies, and repositioning supply chain expectations through robust conditioning and negotiations
  • Developing team competencies through ongoing workshops and accreditation towards Membership of the Chartered Institute of Purchasing and Supply

The project delivered significant gains for the business, with a return on investment in excess of 12:1. In addition to creating a realigned supply chain that is more responsive, dynamic and results-orientated; audited cost reductions of 17% were delivered in year one alone.

The new Strategic Sourcing function has also provided competitive advantage which has helped the company with winning new business. The client was delighted with results saying:

“Having worked with SpringTide, it is without doubt they are able to deliver sustainable business improvements”.

For more information on the successes SpringTide have helped businesses achieve, or to see how we might be able to help you, please call us on +44 (0) 1543 466835 or fill in this form