The Challenge

Procure4’s deliverables were focused on the following:

  • Internet and Data monthly PRI charges for 3 lines were negotiated at a new fixed monthly rate, resulting in 13% annual savings.
  • Sustainable cost base reduction – analysis of spend and identification of savings opportunities and recommended approach to market
  • Risk Management with focus on commodities
  • Process and Policy – review and assessment of current practice with recommendations for improvement
  • Relationship Management – Review of how relationships are managed between Valeo and Suppliers with recommendations on how to adopt a best practice approach in order to optimise the output of these relationships

The Approach

Procure4 analysed Valeo Foods spend, categorising it to a bespoke taxonomy that complimented the category structure within the Business.

All addressable spend encompassing Indirect and Direct categories was assessed with the aim of identifying cost base reduction opportunities and approach to market category strategies were developed following engagement with key stakeholders.

Engagement with the client was extensive allowing Procure4 the access to establish a detailed understanding of business practice.

The Results

During a 10 week programme Procure4 identified a cost base reduction opportunity of up to 6% against addressable spend. The key opportunity areas were found to be in co-manufacturing and raw materials.

45 Category Approaches were developed to provide Valeo Foods with the footprint for delivering the savings plan. Process maps for all relevant processes impacting on Procurement including Supplier Relationship Management were created and practical and achievable “To-Be” models were developed and tailored to fit in with Valeo Foods working practices. Procure4 delivered the insight, guidance and knowledge Valeo Foods needed to identify the positive practice areas which they can now grow and develop, in addition to highlighting the areas where change was needed.

Key Facts

10% Cost Base Reduction

Testimonial from Valeo Foods

Being a newly amalgamated business, it became clear that Purchasing’s role in securing a robust supply chain and optimisation of profitability was more pivotal than ever. Having recently formed a lean centralised function with focus on driving through savings we were keen to ensure we were utilising best practices to maximise efficiency, value and qualitative benefits. We were also looking for innovative new ways of working to drive continuous improvement. By engaging Procure4 to provide a rigorous assessment we were able to identify where we were working well as well as those areas where improvements were needed. Procure4 personnel worked closely with our own people to really understand our business requirements. They proposed practical, feasible options for how we could improve our processes and practices utilising technology where needed. They also helped strengthen our pipeline of cost base reduction and we now have clear direction of where we need to go and how we are going to get there.”

Damian Strain,  Group Purchasing Director

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