Even though a global service company’s UK division has seen savings potential in the Food & Beverage (F&B) and F&B related categories (total annual spend of 88m GBP), they had limited resources to conduct a focused category optimization since their workforce was fully allocated to operational tasks.
To help the company realize this potential, Prokura led a project in a structured approach consisting of three phases. Each phase had focused categories, and the total address spend across those three phases was GBP 36m. In collaboration with the client, each category was addressed by employing a 4-step process:
- Step 1: data collection and baseline
- Step 2: identify suppliers and prepare request for proposal (RFQ)
- Step 3: run the RFQ
- Step 4: negotiation and supplier selection
A total of 17 tenders and 12 direct negotiation throughout the process. As a result, the client was able to achieve significant savings amounting to GBP 2.4m (accounts for ~6.7% of the addressed spend).
To find out more about this case and other industry solutions for service companies, please contact Jens Holbek.