Problem
The organisation had grown consistently in revenue and with it their staff and supplier base. Few contracts were being implemented and none of the existing contracts were being managed.
Suppliers were increasing their prices without any push back or negotiation from the client. Contract disputes were increasing and internal staff did not have the bandwidth or knowledge to resolve the issues.
Solution
We tackled the main categories (Raw materials, FM, IT and Packaging). We evaluated their supplier base, their existing contracts, their current needs and existing risks.
Working with the business we tendered the high value and business critical products and services and renegotiated existing terms with most suppliers. Where needed contracts were put in place. We educated the business on best practices and SRM.
Results
We reduced the supplier base by 15%.
We successfully tendered more than 20 products and services and implemented the corresponding contracts.
An SRM approach was implemented, and supplier relations improved noticeably.
At the end of the engagement an agile and multi-disciplined procurement team was fully functional.
