Packaging: Food Manufacturing
Ebit have recently completed a category review, working alongside one of the leading suppliers of meat to the food service & retail industries in the UK. As a family run business that has grown through acquisitions and expansion the individual procurement teams had developed their own requirements and supplier relationships. Introduced to the business through the family leadership team, we worked with the procurement teams to review their current requirements and supplier capabilities. This led us to undertake a consolidation exercise across the business units and sites.
Client Overview
As a family run UK business our client has grown to be the leading specialist food processing businesses. Having grown consistently throughout their history and acquired other specialist providers the company now has multiple sites throughout the UK.
Supplying retailers, hoteliers, restaurant groups and other food service companies throughout the UK & Europe our client has an excellent reputation for delivering high quality produce.
Our Approach
One of the founding directors approached the team at Ebit to assist with a specific project around packaging. With multiple companies providing packaging solutions across the different business units there was no centralised standards or strategy.
One of the first key challenges was to compile a definitive list of products supplied and suppliers responsible. With no centralised function overseeing procurement many there was no single source of truth. It was only through engaging with the stakeholders across each business unit that we were able to compile a true picture, detailing not only product and spend but also supplier performance.
As a consolidation exercise we needed to benchmark the services offered and pricing against the needs of the client and their sites, and the wider market to see where value could be added and which suppliers would be best to work with.
Our team worked with the various procurement teams to specify a list of requirements for each site. We then approached the existing suppliers and wider market. Following rigorous selection criteria vendors were selected by the client, and all were from the existing supplier base. Those selected were able to offer enhanced service improvements and product quality as well as consolidated pricing.
Value delivered
The client is seeing an initial 13.7% saving from their budget across their packaging requirements within the group. At a time where budgets are under pressure and costs are rising, this represents a significant saving of over £1m from their bottom line.
Equally as important for our client, they now have a consistent experience across all of their sites and companies within the group. This consistency ensures that their highest standards are maintained and reinforced.
With a reduction in the number of suppliers retained this also offers a win-win situation where those who had traditionally provided great product and high levels of service have been able to expand their offering across the group.
Dealing with fewer vendors is also a great boon for the finance team who are already seeing less invoices to process.
Work With Us
We can deliver significant savings for your business