Background

The client was a large retailer, with 200 stores across Europe, 3500 employees, and an annual spend of €200M in GNFR and €800M in GFR. With over 2000 GNFR suppliers across 3 countries and 4 business units, they needed to rationalize the supply base and implement the processes and tools to effectively track their spend, before they could realize savings.

Action

We analysed the spend and budget data for past and coming years, and identified categories with savings potential, and agreed the next steps together with company stakeholders. We managed the RFP and negotiation processes where necessary, and implemented new invoice approval processes. Our team also selected, implemented, and customised a SaaS project management system, which enabled effective information sharing and reporting. We were then invited to use these same tools and processes to tackle their GFR spend, facilitating negotiations, planning and communication for 40 buyers in 2 countries. Using our extensive knowledge of the market in the major GNFR categories, and our efficient RFP process, we were able to find savings opportunities that had been overlooked. With data mining and analysis, we identified rogue, unnecessary and even accidental spend. And the process and tools we put in place meant that our efforts resulted in ongoing savings for years to come.

Outcome

Through a combination of savings and cost avoidance, GNFR in-year savings vs. budget were €5m and GFR savings €25m. The tools and processes we developed are still in place today, and the client was left with an effective P2P process and smaller supply base.

Metrics

3 million shipments, €1bn Spend, 12-month project, €30M Savings