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.
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.