Indirect spend mapping – cost reduction program topline spend & professional services – FOOD

CUSTOMER

A food production company with ongoing transformation project in light of being acquired by a global corporation.

CHALLENGES

  • High maturity on a direct spend level, indirect spend was more or less untouched and placed under the responsibility of individual line managers. Therefor the question was raised whether there were still wins to gain from the indirect spend side. Target was set on generating organic savings of €3M on 9 month horizon

RESULTS

  • Pillar building: Awareness (what do we spend), Commitment (how do we spend) & Engagement (efficiency & effectiveness), more specific in Indirect spend (Topline & Professional Services categories)
  • Took the lead over Belgium, UK,Netherlands & DACH and part of the global corporation’s matrix procurement organisation (regional & global)
  • Managed professional services (PS): consultancy, legal services, office supplies, travel, compensation & benefits, IS/IT, talent & contingent workforce, temp labour, learning and lease cars
  • Managed topline categories (TL): advertising & media, POS materials, promotional objects, graphic chain process, call centers
  • Took the role of ambassador for an ongoing ‘Respect Program’: reaching out to all PS & TL suppliers to subscribe to the sustainability program and to link via Sedex registration
  • Reached the savings target – all though it quickly became apparent that the business was managing the indirect spend fashionably.

All cases