Overview

Background:

A leading FMCG producer with a diversified portfolio of products, was facing challenges in optimising procurement, specifically in their beverage division. Their supply chain complexities and ever-changing market demands necessitated a more strategic procurement approach.

Our Innovation:

KLRES Procurement introduced a transformative Category Management methodology, a proven approach initially pioneered in the 1980s, but revamped and adapted by KLRES to modern business challenges.

Our Comprehensive Solution:

Going beyond traditional procurement strategies, KLRES’s unique Category Management offering focused on strategic alignment, bringing forth both direct and indirect spend areas under a structured and cross-functional approach that ensures sustained value and benefits.

Challenges

Challenges:

• Diverse supplier base leading to increased complexities.
• Lack of strategic alignment in procurement processes.
• Escalating costs without clear visibility or control.

Our Client’s Expectations:

• Achieve substantial cost savings.
• Streamline and optimise the procurement process.
• Gain a competitive edge through improved category management.

Solutions

Strategic Alignment: Ensured that Client’s procurement objectives were aligned with their business goals, especially in the beverage division.

5-stage Implementation: A tailored approach that moved organisation through the 5-stage category management process, ensuring effective results irrespective of industry challenges.

Data-Driven Strategy: Leveraged market intelligence to ensure procurement decisions were grounded in reliable data, leading to informed and profitable choices.

Cross-functional Engagement: Collaborated across business units, embedding category management as a holistic business change process, rather than just a procurement shift.

Results

Savings Achieved: Our client saw a 15% reduction in procurement costs within the first quarter of implementation.

Enhanced Supplier Relationships: By strategically categorising suppliers, better partnerships were formed, leading to more favourable terms and a reduction in lead times.

Improved Spend Visibility: The introduction of data-driven decisions provided clear insights into spend patterns, allowing for better budgetary controls.

ROI & Cost Savings: A three-fold ROI was realised within the first six months, attributing to both tangible savings and improved operational efficiencies.

Six Months Progress:

• Further reduction in procurement costs by an additional 7%.
• Introduction of two new categories based on market insights.
• Improved stakeholder satisfaction rates by 20% due to streamlined processes.

Client Feedback

Testimonial:

“Our partnership with KLRES Procurement has been transformative. Their Category Management approach not only streamlined our procurement processes but also led to substantial cost savings. Their expertise is undeniable, and their methodology, grounded in solid market intelligence, has given us a competitive edge we didn’t know we needed. We are beyond pleased with the results and look forward to our continued collaboration.” – Jane Wilde, Chief Procurement Officer.

Embrace a partnership that ensures results, efficiency, and growth. Connect with KLRES Procurement and dive deep into the strategic world of Category Management.