The Challenge

Silver Spoon is the retail brand of British Sugar and while significant focus had been placed on the Directs Supply Chain, the Indirect Spend Areas had received limited attention due to resource constraints and the need to prioritise other areas.  Silver Spoon were keen to address the Indirects spend in order to identify where the supply chain was optimised and where there was room for improvement from a cost and qualitative perspective.  They were keen to develop a sustainable work plan for delivering supply chain optimisation and cost efficiencies in this area and engaged Procure4 in order to obtain an external view based on current knowledge, experience and expertise on sourcing this category areas on a daily basis across a broad sector of industries.

The Approach

Procure4 undertook a total spend review, challenging existing suppliers, spend management approach and operating models to create saving opportunities. Such opportunities were prioritised according to how easily deliverable and sustainable the potential CBR was likely to be. 

The focus was to deliver as much as possible in that fiscal year, so annualised benefits would be delivered during 2014.  The output of this scoping work was a saving plan per category with clear milestones, base and stretch targets and Approach Strategy documents. A target ‘CBR’ plan was agreed, which included some identified Quick Wins along with different options across the categories based on the level of change management involved so that Silver Spoon could make an informed decision around what was achievable within the resource pool and target timeframes in which they wanted to deliver the programme.

The Results

Procure4 developed a realistic delivery plan that had the potential to deliver between 6-11% in annualised savings against the Indirect Spend with an opportunity to realise a significant proportion within the 2014 financial year.

Silver Spoon benefited from understanding the areas that needed to be addressed and were pleased to receive a detailed, robust deliverable plan for tackling the Indirect spend area so that they were in a position to hit the ground running. 

Key Facts

7,500,000 Tonnes of Sugar Beet Provided to Factories Each Year
28 Average Miles Sugar Beet is Cultivated from Factories
5 Number of Sites Nationwide

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