Soft Drink Manufacturer – ArcBlue Asia Pacific

Soft Drink Manufacturer CLIENT STORY

Challenge

$1.2bn of external expenditure including $200m of indirect expenditure
Little vision, policy and process with predominantly traditional approach to procurement
Poor process control in indirect expenditure
Need to reduce cost base and improve management of complex commodity categories.

Approach

Structured assessment and diagnostic of the total procurement capability
PMMS implemented the recommendations and provided resources to support the team in delivering opportunities to the management of key categories in direct and indirect expenditure
Developed policies, processes and proposed controls to the procure-to-pay process
Training to develop and enhance the skills within the team

Results

Reductions of over $20m or 20% annualised improvement for supported categories and a ROI of over 10:1
Improved organisational alignment and delineation of sourcing role from materials management Consistent methodologies, tools and processes adopted across the procurement team to support better decision making
Effective control and influence over indirect expenditure