Supporting Clients Across Different Geographies
Written by: Neil Middlemiss, Project Manager
Procure4 recently worked with a leading international provider of Childcare Services looking for support to address their Indirect Spend across operations in both Europe and North America– Canada and the U.S. They needed a partner with presence and expertise in both regions who could adapt to local conditions, employ a disciplined and consistent approach, and effectively communicate with the client’s stakeholders using “one voice”.
Utilizing resources from the company hubs in Leamington, U.K. and Charlotte, NC, Procure4 assigned a team of local Category Managers and Subject Matter experts, reporting through a single Program Manager, to both geographies. This ensured that there was effective communication with Stakeholders at the local level and the Client Sponsor at the corporate home office in the U.K.
The challenges that Procure4 faced on this project centered around the differing operating dynamics of the client in Europe and North America.
In Europe, the directive was to optimize an already established supply base, with minimum disruption to the business. The objective was to drive improved value from existing vendors.
In North America, the request was to consolidate the number of suppliers, particularly in the U.S. where the client had grown very quickly through a series of acquisitions. This consolidation would create a platform for future growth by enabling the addition of new locations to a single national vendor agreement.
The results from this exercise exceeded the expectations of both parties. In Europe, Procure4’s knowledge of categories, vendors, and market pricing enabled a reduction in spend of 17% in an overall inflationary market. In North America, the results were even more impressive, with cost reductions approaching 30% in both the Canadian and U.S. operations, largely driven by consolidation of spend onto single national platforms.
Procure4 market knowledge and vendor relationships were instrumental in achieving these results. Moreover, both projects also delivered on time against the parameters established as part of the original Program Timing Plan.
Several factors were critical to our success. These included:
- The resourcing structure and local knowledge supported by Procure4 operating hubs in Europe and North America.
- Effective communication with local Stakeholders and the Corporate Office facilitated by a single Procure4 Program Manager spanning both geographies.
- Clearly defined Approach Strategies for addressing different client needs in their respective markets.
- Application of a consistent Procure4 Project Planning and Sourcing Process across both regions.
- Database and Subject Matter Experts with the requisite back-up knowledge and information to support sourcing studies across multiple geographies.
Procure4 was able to deliver a package of support that met all of the client’s needs and provided both structural and financial benefits to their business. The client was pleased with the results of the project and requested that Procure4 support further studies in other categories on the direct side of their business.
This project demonstrated our ability to provide consistent service and results across different geographies. Reach out to us if you need assistance with your procurement needs across different regions.