The Challenge

Procure4 was targeted to create £1m savings by reviewing and renegotiating indirect spend categories.

Working with the Thornton’s procurement director we identified 30 categories of spend to review and tender. The project was established as a joint project with Procure4 working alongside Thornton’s own procurement team.

A few examples of categories reviewed include: Carrier bags, in-store shipper units, car fleet, engineering stores for factory, reactive maintenance spend for stores, fork lift trucks.

The Approach

Procure4 engaged with all key internal stakeholders and budget holders to ensure processes, timescales and challenges were thoroughly understood.

Baseline spend and category approach strategies were agreed with key personnel including operators, directors and all stakeholders before the Procure4 team, working closely with the Thornton’s supply chain team, took the agreed categories to market.

The use of Procure4 processes, E-procurement and more traditional negotiating methods were used. In addition some categories were reviewed and value created through challenging the appropriateness of the current product or service and developing best fit alternatives with incumbent suppliers.

The project reported through to the CEO and management board with monthly reporting of savings generated and category progress. Financial measurement was overseen by the Procure4 financial controller and Thornton’s Finance manager.

The Results

In excess of £1m savings (greater than 10% of the spend in scope) were tabled for Thornton’s through our activities. Savings have been thoroughly embedded into the business budgets and are demonstrably being delivered to the bottom line with auditable evidence signed off both by Thornton’s finance director and their auditors.