Working with a high street, catalogue and online retailer we reviewed procurement activity across a number of defined indirect spend categories. Our experienced consultants took full responsibility, working proactively across the business to engage stakeholders, run procurement activity, deliver savings and add value.
Client Overview
As one of the UK’s home shopping pioneers, with over 50 years of experience our client offers an unrivalled collection for the kitchen. Alongside creative kitchenware they offer practical time and effort saving ideas for the home, and inspiring gifts from all over the world.
Established over 60 years ago as a catalogue retailer run from a garage, they now have 64 stores, as well as online and catalogue retail presence.
Our Approach
Working with our client, we reviewed their spend data across multiple categories and departments. This enabled us to identify a list of projects which we could then agree to prioritise and address on behalf of the client.
This initial review has led to the identification of 38 potential projects which were initially agreed to fall under the review, with a combined annual spend in excess of £7.6 million. These projects were then prioritised based on multiple criteria and, to date, we have successfully completed 23.
With categories reviewed ranging from logistics to software, postage to till rolls and lifts to bank charges our team of procurement specialists have been able to offer expertise and support across multiple categories.
Results
- The 23 projects completed to date have delivered annual savings in excess of £1.5 million against an annual spend of £4.9m. This equates to a 30% cost reduction for these goods and services.
- True value is not only about cost reduction and we have continued to work with stakeholders and departments to embed best practice. One area of focus has been the implementation of effective Supplier Relationship Management programmes to ensure value is retained and delivered into the future.
- With a further 7 projects currently in progress we are sure our client will continue to benefit with additional cost savings and improved supplier relationships.