Background

Our client is recognized as a leading player in pancake, waffle mix, oatmeal, protein bars and fruit syrups categories, selling their products across all the major supermarkets across the US. To further accelerate their impressive y-o-y growth profile, our client got major investment through a large Private Equity firm. Management recognized the need to strengthen their supply chain capability to match the growing scale of their operations.

Action

Enabling Procurement team was engaged to review the supply chain optimization opportunities across the business. Following a 6-week opportunity diagnostic, our findings were well received by the management, and we were onboarded to execute a large implementation programme with 3 key aims: 

• Deliver savings opportunities identified in the diagnostic.
• Build parallel supply sources to reduce the risk in the supply chain, given the global supply chain crisis.
• Strengthen the capability of the existing procurement team

Over the course of following 7 months, we worked shoulder to shoulder with our client team to deliver this ambitious programme, setting-up a cross functional group including procurement, marketing, R&D, operations, and finance.  From Enabling procurement side, a team of expert procurement consultants were deployed to set-up and execute the sourcing plans. Key spend categories included comanufacturing, packaging, logistics and ingredients (animal-based protein, plant-based protein, chocolate, flavors, oats, wheat, maple syrup, sugar) Our team implemented several sourcing levers including executing global RFPs, value chain optimization moving from distributors to manufacturers, conducting data drive negotiations, optimizing inventory and logistics, and working very closely with suppliers and client R&D to deliver specification optimization opportunities across multiple ingredient categories. A high intensity PMO was put in place to execute a strong governance routine including regular updates to the Board and the Private Equity sponsors.

Outcome

Programme delivered >10% savings across the addressed spend  – Dual sourcing was put in place across the key categories to reduce the supply risk and to support the growth ambitions. Multiple suppliers were identified and qualified across all categories to enable fast reactions across the supply chain -Hands-on training was delivered to the current procurement team acquainting them with best-in-class procurement process and tools to execute the sourcing agenda.