The Challenge

In 2003, following the acquisition of Bulmers by Scottish & Newcastle plc, Procure4 was asked to develop and deliver a procurement strategy for the combined £350m spend on ‘third party’ products. These being products sourced from manufacturers in order to provide ScotCo customers with a full range of drinks for their consumers.

The Approach

Procure4 needed to pull together volume and pricing data from 3 disparate systems in order to benchmark pricing and build a robust cost reduction plan. Procure4 then allocated 2 category consultants to the project to develop and support the delivery of approach strategies for supplier negotiations that were acceptable to the buying teams in each of the group businesses.

The Results

By May 2004, the team delivered over £10m cost reduction.  Success was achieved through establishing the optimum fit of brands to the Scottish & Newcastle manufactured portfolio. Procure4 then aligned business unit sales teams behind the key products in the range. This enabled enhanced growth in return for stronger sales and marketing support for ScotCo from key suppliers.

 

Procure4 brought focus, process, benchmarking and cross business unit alignment to an organisation going through significant change. They provided the tools, expertise and motivation to break with the traditional silo approach and surpass business expectations on the possible contribution of third party procurement.

Key Facts

£10,000,000 CBR Delivered
£350,000,000 Total Spend Assessed
2 Number of Category Consultants Assigned

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