Project at a glance
Client: Wholesaler for Asian food
- Implementation of an international co-sourcing: support of purchasing activities in Asian countries for food products.
- Training of purchasing staff in best practice global sourcing
- Analysis and optimization of existing purchasing processes and procedures
- Knowledge of an orderly inquiry and tender process is not evident among sourcing office employees
- The employees of the sourcing offices have only a very limited knowledge of their procurement markets
- As a consequence of an incorrect specification, one of the products with the highest sales was purchased from a competitor
- Lack of transparency in the purchasing process between sourcing offices in different countries
Project success: 10-30% savings
After the commodity group analysis, the products for the tenders were determined. During the systematic procurement market research and pre-qualification of new suppliers, the specifications were recorded and summarized in coordination with the responsible departments.
The tenders were carried out and evaluated. After auditing by the sourcing offices, the new suppliers were approved and included in the supplier pool. Terms and conditions were negotiated and initial test orders were placed.
Result of the project: savings of 10-30% per product.
Subsequently, the customer's buyers were trained in procurement workshops. In addition, a category management concept was introduced with measures to increase transparency and efficiency in the purchasing process. At the same time, further approaches were designed to realign the purchasing department.