Aryzta is the world’s largest speciality bakery, with operations across the globe and turnover in excess of $3bn. 

The Challenge: 

Operating with multiple brands in a highly fragmented and fast-evolving market, Aryzta was under pressure in 2019 to re-align its operations to reflect changes in consumer buying behaviour. A core element of this shifting strategy was to reduce costs. 
 

The Solution: 

Procure4 were selected to bring additional capacity and insight to the Indirect Procurement team in North America. Joining the group pre-Covid, but at a time of significant re-structuring, Procure4 had to quickly adapt processes and ways of working to fit with a fast-moving and highly focussed operation across 22 bakeries in 2 countries. 

The Results: 

Procure4 were able to deliver over 10% cost base reduction on a broad range of indirect categories across two markets. 
“Procure4 became an extension to our team, tailoring their ways of working to fit with the rapidly changing situation and Aryzta culture. Together we delivered amazing results given the pressures on us and our bakeries and it is a credit to Procure4’s agility, attitude, and experience that we were able to see this project over the line during the peak of C-19 disruption.” 
- Sadry Cafe, VP Procurement - Aryzta N.A. 

Aryzta 

Preview 

Aryzta is the world’s largest speciality bakery, with operations across the globe and turnover in excess of €3bn. 

Challenge 

Operating with multiple brands in a highly fragmented and fast-evolving market, Aryzta was under pressure in 2019 to re-align its operations to reflect changes in consumer buying behaviour. 
 
A core element of this shifting strategy was to reduce costs to help fund growth, notably in Europe and North America. 

Approach 

Given reductions in overheads, Procure4 were selected to bring additional capacity and insight to the Indirect Procurement team in North America. Joining the group pre-Covid, but at a time of significant re-structuring, Procure4 had to quickly adapt processes and ways of working to fit with a fast-moving and highly focussed operation across 22 bakeries in 2 countries. 
 
The key to successful change management in any project is client engagement. However, this was heightened in Aryzta where resources were stretched and the priority for all functional stakeholders was on enhancing performance rather than supply chain efficiencies. To that end the Procure4 team had to work hard to ensure busy stakeholders felt aligned and in control, whilst not being a burden on their limited day to day capacity. 
 
A robust Governance structure was essential, and the project was helped by strong leadership from both the CFO and the CPO. This resulted in early pace and some quick wins in categories with low impact on the brand or operations, such as travel, rental cars, and office supplies. 
 
After 4 months of good engagement and momentum, the world was hit by Covid-19 and Aryzta sales were thrown into chaos, resulting in C-Level focus on business survival and suppliers also struggling to cope, Procure4 had to act sensitively but decisively to maintain progress on the project. Re-prioritising categories to minimise the burden on bakeries and respect supplier relationships where vendors were clearly providing additional flexibility and customer service, in an environment where cost reduction was even more critical! 
 
Procure4 truly acted as an extension of the Aryzta team, managing supplier and specification changes during a period of upheaval, and maintaining excellent working relationships with stretched stakeholders to deliver challenging targets to refined timings. 

Results 

Procure4 were able to deliver over 10% cost base reduction on a broad range of indirect categories across two markets. However, the real success of this project was the cross-functional working during a period of global crisis. 
 
Balancing erratic client needs with a rapidly changing supply situation. Managing to maintain focus and momentum on what was traditionally a very low-profile focus area in Aryzta, to reduce costs, but also enhance service, quality and ways of working to the benefit of all parties. 

Key Facts 

80 Number of Countries Client Exports to 
15% CBR Delivered 
18 Categories Reviewed 

Testimonial from Aryzta 

Procure4 became an extension to our team, tailoring their ways of working to fit with the rapidly changing situation and Aryzta culture. 
 
Together we delivered amazing results given the pressures on us and our bakeries and it is a credit to Procure4’s agility, attitude, and experience that we were able to see this project over the line during the peak of C-19 disruption. 
Sadry Cafe, VP Procurement - Aryzta N.A. 
Tagged as: Case Study
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