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Situation:
In a changing business environment the business model and value proposition are no longer profitable.
Customers are demanding more for less
Suppliers are reducing margins, forcing stock holding, going direct to customers.
Procurement & Merchandising are reactive only
All Business units and departments work in isolation
There are no cross business / commodity supply strategies or management of suppliers to deliver business needs.
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Approach & Results
Full benchmarking analysis undertaken using PMMS Benchmarking methodology
Detailed recommendations and prioritised Action plans endorsed by the board.
Major 2 year Change Programme embarked upon with PMMS support including:
Head of Procurement for 16 mths
PPS workshops
PCA training
Negotiation training
SASPs ¡V full & mini
On target to deliver 5% of total expenditure in 2003 and restructure & train for sustainability.
More than self funded in the first year
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