Following an analysis of the purchases and the evaluation of potential savings, we developed a negotiating strategy covering several months for a leading company in the public catering sector.
The growing size of the company presents possibilities to tap the potential of higher volumes – to do so, however, the purchasing processes must be adjusted. As the new challenges facing both the operational side and staff use up a lot of energy and capacities in the organisation, it is not uncommon to forget the opportunities that arise in relation to the cost of goods as a result of growth. A look at suppliers and purchases suffices for KBC Food+ to create an effective negotiating project plan.
The execution of “Quick Wins” is important to create immediate cover for the Purchasing department. The categorisation of more complicated procurement projects into “mid-term” and “long-term” topics create the negotiating pipeline and thus a structured timetable forward.
- Multiply the existing contribution to the company’s results
- Strengthen the Purchasing department within the organisation
- Create and implement a results-driven project plan for negotiations
- Prepare and support procurement negotiations
We categorised the negotiation subjects by value and complexity. The relevant projects and timelines were defined in line with this ranking. In a first step, the product groups and suppliers with the highest purchasing volumes were processed in order to realise the highest level of savings at an early stage. At the same time, we reviewed the purchasing volumes to find topics pertinent to earnings and easily realisable.
Realisation of potential
It did not take long for the initial impact to be felt. At €3 million of savings within just 17 months, we, in collaboration with our client, made a large contribution to exceeding their targets for two years in a row. In addition, since then the Purchasing team has occupied a significantly stronger and more creative role in the company.