To maintain its competitive edge, a global food company set an ambitious target of reducing its raw materials and packaging procurement costs by $200 million. Accenture worked closely with the company’s leadership team not only to identify opportunities for savings, but also create a strategy for capturing those savings, including a new operating model for procurement. With new, standardized processes, eSourcing capabilities, and well defined roles for global, regional and local procurement teams, the company is on track to achieve cost savings of $200 million.
To maintain its competitive edge and boost its financial performance, the food company established an ambitious strategy to reduce its operating costs by $1 billion by the end of the 2014 fiscal year. One area that held particular cost-savings appeal was procurement, which had traditionally been highly fragmented and managed on a region-by-region basis.
The company engaged Accenture to help identify how it might save $200 million from its global sourcing and procurement operations. Accenture, with its wide functional and deep industry knowledge, was a logical choice. In addition to bringing deep business strategy and procurement experience, Accenture had previously worked with the company’s primary investors to drive significant procurement savings at other food and beverage businesses.