Case Study:

Chilled food manufacturer saves £2M through indirect procurement cost reduction.

Client

A leading UK chilled food manufacturer supplying the UK’s leading supermarkets, retailers and foodservice customers

The project objective was to drive EBITDA improvement from cost improvements in indirect spend categories

Approach

Initial Spend Analysis & Opportunity Assessment identified and planned a 7 month programme to deliver £1.7m savings

More than 30 individual sourcing projects across 20 categories focusing on food industry specific and general indirect categories

Sourcing strategies included re-negotiations with suppliers, full tender processes and service delivery changes

Results

Savings of £2m delivered

Category results Saving
Food Testing Products & Services 10%
Agency Labour 3%
PPE & Consumables 14%
Chemicals 12%
Laundry Services 8%
Telecoms 28%
Hygiene Services 12%
Temporary Labour 4%

 

  • Maintained and improved supplier service levels and product specifications whilst delivering cost improvements
  • Improved stakeholder engagement and support for indirect spend categories

 

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