As part of the value creation plan, Ayming was engaged to identify cost optimisation potential across key direct spend areas, as well as to conduct a risk analysis on key raw materials.
Seeking to optimise its procurement costs, a leading private equity-owned multi-national food processor engaged Ayming to
- Assess key direct spend areas such as packaging
- Identify improvement opportunities
- Develop a strategy and implementation plan to deliver them.
In addition, to conduct a detailed risk analysis on key raw material supplies and develop a risk management strategy.
- Ayming’s procurement specialists conducted an opportunity assessment to identify optimisation levers for each of the categories. The team defined savings targets and created the implementation plan to achieve them.
- Throughout the engagement, the team engaged with several functions across the business to ensure that the overall strategy (e.g. market positioning in different markets) was considered when evaluating alternative materials & specifications.
The results obtained
Ayming successfully identified and validated double-digit % savings opportunities across in-scope categories. Furthermore, several procurement effectiveness measures were issued to ensure that benefits were sustained.
In addition, a commodity-based risk management strategy and plan of action was created together with a dynamic raw materials risk management tool.