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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
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