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When procurement makes it to the annual report

Case study

When procurement makes it to the annual report

Background

Our client, a retail organisation active in 3 West European countries, was facing difficult trading conditions and needed to restructure its financing. One part of the conditions imposed by the lenders was a drastic review of the business.  The client procurement organisation consisted of 70 GFR buyers in their different formats, already very active in commercial negotiations but in a slightly fragmented way.  Enabling was brought in to conduct an initial review and then led a group-wide implementation of a comprehensive programme to transform the procurement strategy and execution of goods for trading.

Action

  • Start-Up: Initial assessment of potential and definition of program     
  • Program: Full program of category optimization and continuous improvement with newly identified long-term partners of client organisation. Focus on ensuring real EBITDA improvement in line with market expectations.

We offer a wide range of procurement capabilities going from support formulating procurement strategy definition to on-the-implementation and assurance of company objectives, be it financial or operational. In this case Enabling Procurement’s role was twofold:

1. lead the program providing PMO and constant interaction with Board and investors.

2. Provide on the ground operational consultants leading suppliers’ selection and negotiation in full collaboration with the buyers.

Outcome

Cumulative savings of €60M over 4 years, improved competence of the GFR purchasing function, and standardised cross-business ways of working.

Metrics

300 stores, €600M spend, 12-month project, €60M savings