SUCCESS STORY
£39,872 cost savings delivered
Optimising Efficiency & Cost Control for a Food Manufacturing Client
- Building structured governance and commercial discipline at scale
Outcomes
£39,872 cost savings delivered
Annualised savings achieved through the implementation of a group-wide food testing and inspection agreement, leveraging total spend and standardised pricing across all operating sites.
Consolidated suppliers from 5 to 1
Reduced supplier complexity by transitioning from five separate testing providers to a single strategic partner, improving oversight, governance and relationship management.
Group-wide Visibility
Introduced centralised reporting, standardised testing processes, contractual KPIs and group-level governance, providing greater transparency, consistency and operational control across all sites.
BACKGROUND
A leading food manufacturing group with multiple operating sites was managing food testing and inspection services independently across the business.
EBIT Intelligent Procurement was engaged to review the category and identify opportunities to improve efficiency, governance and commercial performance.
the challenge
Before the project began, the client’s food testing arrangements were fragmented across the group. Individual sites were managing their own laboratory testing requirements, each working with different suppliers, pricing structures and operating models.
While the testing requirements were broadly similar across the business, there was no consistent approach to supplier management, reporting, governance or cost control. Procurement decisions were being made locally, resulting in limited visibility of total group spend and missed opportunities to leverage the organisation’s purchasing power.
Key challenges included:
- Five separate testing suppliers across the group.
- Multiple pricing models and contractual arrangements.
- Limited commercial leverage due to fragmented spend.
- Site-level management of testing costs and reporting.
- Inconsistent governance and service management.
- Lack of robust contractual terms and performance measures.
SOLUTION
EBIT Intelligent Procurement designed and implemented a group-wide sourcing strategy focused on supplier consolidation and centralised management.
The key changes included:
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Appointing a single supplier to provide food testing services across the entire group.
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Establishing a centralised pricing model covering testing services and associated consumables.
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Creating a group-wide contractual framework with clearly defined service expectations.
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Implementing consistent reporting mechanisms across all sites.
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Introducing measurable KPIs and governance structures to monitor supplier performance.
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Creating a strategic supplier partnership to support future business requirements.
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