The Challenge
Procure4 completed a cost reduction project for Nando’s in 2005, finishing with savings 14% ahead of the agreed target.
Nando’s re-engaged Procure4 3 years later to undertake a cost reduction review of categories within food & beverage, property and in-directs.
Procure4 were brought in to challenge long-term thinking and supply chain solutions and to bring opportunities to the main board for consideration.
The Approach
Procure4 assembled a dedicated team to create jointly agreed category by category approach strategies to ensure maximum delivery within the shortest period of time.
The categories included strategic or brand focused areas such as; chips, cooking oil, pitta breads, beers, printed napkins, catering equipment and furniture.
Other non-strategic areas included; wholesale food lines, waste collection, couriers, cash collection, grounds & plant maintenance and property repairs & maintenance
The Results
The Procure4 team introduced eAuction methodology to Nando’s and this technique was successfully run within strategic and non- strategic categories. The overall delivery of this approach represented c33% of the project delivery.