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Selected results / Case study
Manufacturing · Performance improvement

Building a strategic sourcing capability.

A FTSE 350 manufacturing company supplying refrigeration services to major UK supermarkets needed to develop its procurement team from the ground up.

17%

Auditable cost reductions achieved in year one.

12:1+

Return on investment reported as in excess of 12:1.

  1. 01Situation

    Capability gap

    A procurement function to build from the ground up.

  2. 02Action

    Strategic sourcing

    Clear ownership, commercial disciplines and measurement.

  3. 03Change

    Measurable savings

    17% auditable cost reductions in year one.

The challenge

The business needed leadership commitment to strategic sourcing, a capable team, an actionable business plan and a robust measurement regime. Supplier expectations and stakeholder engagement also needed sustained attention.

The work

  • Put procurement practices, policies and procedures in place.
  • Introduced measurement criteria for savings and transformation.
  • Allocated categories, established buyer responsibilities and introduced accountability.
  • Developed capability through workshops and accreditation towards the Chartered Institute of Purchasing and Supply.

The outcome

  • Auditable cost reductions of 17% were achieved in year one.
  • Return on investment was in excess of 12:1.
  • The supply chain became more responsive and results-oriented.
  • The strategic sourcing function also helped the business win new work.

Historical engagement from the Nil Plus Ultra case-study portfolio. Figures and comparisons relate to this specific engagement.

Client perspective

“I have used them for a number of years; without doubt they are able to deliver sustainable business improvements.”

Head of Procurement
More experience

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