Ch&Co
CH&Co is a contract and event catering business, a collective of chefs, nutritionists and colleagues with a shared passion and focus on food.
The Challenge:
Procure4 were appointed by CH&Co to undertake a full review of all third-party supplier spend whilst supporting with the integration of Gather & Gather, the latest in a line of business acquisitions by CH&Co, with the view to reducing cost and complexity across their supply base.
The Solution:
The Procure4 team completed an analysis of all supplier and spend data, creating a clear understanding of the size of the opportunity. After the initial scoping exercise, Procure4 drafted category approach strategies for client approval while engaging suppliers. The approved approach strategies were quickly engaged, covering a spend of c£100m across the wide range of Indirects categories as well as F&B.
The Results:
The result of the programme is a consolidation of suppliers across the two businesses delivering an improved cost base in all categories reviewed. The ‘Best of Both’ activity of aligning prices across both CH&Co and Gather & Gather drove a benefit of £500k+.
“Procure4's strategic approach and understanding of marketing dynamics have been invaluable. I would highly recommend Procure4, for their outstanding contribution to optimising costs and exploring new avenues within each category.”
- Anna Shirley, Marketing and Customer Experience Director, Barchester
Ch&Co
Preview
Full review of all third-party supplier spend whilst supporting an acquisition
Challenge
CH&Co is a contract and event catering business, a collective of chefs, nutritionists and colleagues with a shared passion and focus on food. CH&Co pride themselves in taking a mindful approach to food experiences so procurement plays an important role within their business.
Procure4 were appointed by CH&Co to undertake a full review of all third-party supplier spend whilst supporting with the integration of Gather & Gather, the latest in a line of business acquisitions by CH&Co.
The challenge for Procure4 was two-fold. Firstly, aligning pricing across both businesses to ensure ‘Best of Both’ rates were established. Secondly, to deliver a Cost Base Reduction plan of between £5m - £9m across a spend portfolio of c£100m.
A large percentage of the categories to be addressed fell into indirects, including; Waste, Cash Collection, Credit Card/rental/charges, Taxi, Office, Safety, Marketing & Print, travel, vending, equipment maintenance, Design & Build/FF&E, Temp & Perm Labour, IT Services, Legal, Financial Services, Hard FM & Property, Soft FM and Insurance.
Procure4 were also to align the workstreams on Food & Beverages with a tender that was already underway reviewing the Central Distribution market.
Approach
The project was split into two key workstreams.
Best of Both
Procure4 conducted a brief scoping exercise to understand the ‘As-Is’ situation across all of the 30+ categories within brief.
The ‘Best of Both’ activity was the first objective to be completed, and all project resources were channelled into securing the aligned rates during the first 6 – 8 weeks of the delivery phase.
The Procure4 team completed an analysis of all supplier and spend data, creating a clear understanding of the size of the opportunity. Procure4 engaged all relevant suppliers to align pricing. This exercise was finalised with Procure4 issuing contract variations to these suppliers to confirm prices for both caterers. The final result of this project drove annualised benefit of £500k+.
Main Programme
After the initial scoping exercise, Procure4 drafted category approach strategies for client approval while engaging suppliers. The approved approach strategies were quickly engaged, covering a spend of c£100m across the wide range of Indirects categories as well as F&B..
Procure4 submitted tenders, to supply CH&CO direct or via a nominated distribution partner, across the consumables and F&B categories. The submissions were reviewed against the proposals CH&Co had already received from participants in their Central Distribution Tender. This enabled the team to review all of the potential opportunities available, and model a wide-range of different scenarios and supply chain solutions. A period of 4 weeks was spent refining supplier proposals, re-negotiating and re-modelling scenarios until the optimum solution was agreed upon by all parties. This solution delivered the CBR target and met the operational needs of CH&Co.
In addition to this, other notable successes within the main programme included an 80%+ reduction on Card Acquiring Services, a £400k+ saving on Linen & Laundry and a full Category Management review of Wine that resulted in 15% CBR delivery.
Results
The result of the programme is a consolidation of suppliers across the two businesses delivering an improved cost base in all categories reviewed. The ‘Best of Both’ activity of aligning prices across both CH&Co and Gather & Gather drove benefit of £500k+.
The remaining programme of activity unlocked 7% Cost Base Reduction with a number of new supplier solutions implemented.
Key Facts
30+ categories
£100m spend
Tagged as: Case Study
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