The Challenge

Weetabix is the UKs number one selling, most trusted and most recommended cereal. It exports to over 8O countries worldwide. It was a family owned business from 1932-2003 when Bright Food Group (Chinese Food Conglomerate) bought a majority stake. The remaining shares are now owned by Baring Private Equity Asia.

In August 2015 Procure4 won a three way pitch to provide Procurement Services to the FMCG which has embarked upon a Focus for Growth Strategy.

The Procure4 team have been asked to deliver 3 key objectives: to drive In Year and Annualized Saving that are transparent in the P&L, to raise the profile of Procurement through world class stakeholder engagement and to leave a legacy that records all the work completed.

The Approach

Procure4 were initially asked to review the Professional Fees categories, this was quickly expanded to include Logistics, a key category for the FMCG. Six months later FM and Marketing have also been added to the

Procure4 teams remit with the brief to deliver a benchmark for Marketing and a full strategy and implementation review on FM.

Procure4 followed their proven model of reviewing soft and hard data to build a scoping report, formulating approach strategies and gaining approval for a targeted CBR plan. The focus was to deliver as much as possible in the fiscal year so Quick Wins were prioritised and pace delivered across the portfolio.

Weetabix had also asked Procure4 to prioritise stakeholder engagement, being clear that the way projects are delivered is equally important to them as the fiscal results. As with any project, the Procure4 team ensured they fully understood the culture and truly listened to what was important to each individual that would be touched by the category reviews.

Initially the Programme was set up and led by the Weetabix Procurement Leadership team but with the increased scope and delivery the project is now sponsored by the Weetabix CFO and regular updates are provided to Directors.

The Results

The Weetabix collaboration with Procure4 has been extended and is therefore on-going, however the results so far have been impressing everyone.

Cost based reduction savings are averaging 15%, signed off by Finance as transparent in the P&L.

IY and annualised savings are on course to deliver the stretching target our client was hoping to achieve.

More importantly it’s the way we are working together with a one team approach, that has made this project both a success and enjoyable to date.

  

Key Facts

50 Number of Miles from Northamptonshire Mills that Wheat is Grown
80 Number of Countries Client Exports to
15% CBR Delivered

Testimonial from Weetabix

I am pleased to have an opportunity to provide feedback to you because the Category Leader [Dessy] did an outstanding job.

From the beginning Dessy was organised and thorough, she understood the services provided by the Pension Administrator and the costs, she patiently discussed issues with our incumbent and sought clarification from them and she negotiated effectively whilst keeping the Company and me ( on behalf of the Trustees) in the loop. Of course the result of the process was extremely satisfactory. I put this down solely to Dessy’s work

Having tried to negotiate with the Supplier and agree a reduction in their fees with only very modest success, I am in a position to confirm the advantage of having a professional like Dessy involved in the process

I cannot speak highly enough of her.


Ian Forrest, Chairman of the Pensions Trustees for Weetabix

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