SHAKE’S PROCUREMENT CASE STUDIES
A selection of our success stories and the clients we have helped save millions for. We are world wide and can handle and organisation, any size, any time.
TRAVEL PROGRAMME PROJECT FOR LARGE MULTINATIONAL
1.
CHALLENGE
There was little or no joint management of travel performance, or group wide parity, which was missing savings and opportunities. We found inefficient booking and reconciliation processes, as well as an inability to drive best pricing. Overall, the company had a poor reputation within the travel industry as a fragmented company.
2.
APPROACH
We appointed a single managing contractor to manage the programme with a contractual commitment to make savings. This engendered collaboration with all operating companies and key markets, as well as putting an emphasis on service as well as cost, so building strategic partnerships with suppliers.
3.
RESULT
The managing contractor committed savings of £500,000 (3%) pa. There were additional programme savings of £1.7m (8%) delivered via suppliers, plus service improvements. The costs were transparent, and then replicated in Global markets, adding significant further savings.The company was positioned as key industry player, able to remain best in class.
IT CONSTRUCTION PROJECT IN GERMANY
1.
CHALLENGE
Local stakeholders were being squeezed by HQ to reduce budget before being allowed to commence the project. A shortage of building contractors were willing to tender or able to meet project deadline. Lead time for machinery infrastructure was being eroded by lack of tenders. There was serious risk the Centre would be re-located away from Europe as budget and lead time concerns rose.
2.
APPROACH
The project was broken down into categories and tendered individually; this allowed the search for a suitable contractor to be undertaken without impacting the deadline delivery date.
3.
RESULT
Each OEM negotiation resulted in savings, without the mark up from a prime contractor. The team delivered a €1.4m savings. Negotiations with key supplier saved a further 4%, €2.7m.The key supplier also took on long lead equipment contracts, saving installation and warranty obligations. Total savings = €5.5m – over 5% of project value.
MARKETING AGENCY SOURCING STRATEGY FOR AN FMCG COMPANY
1.
SITUATION
In response to the fast changing media environment an FMCG company asked us to develop a strategy for how to best utilise its agency partners to maximise opportunities through these mediums.
2.
INTERVENTION
This was a highly complex assignment and required a detailed assessment of both the internal and external landscapes before recommendations could be made.
Specifically we;
• Visited and interviewed key marketing leaders and agencies across the region
• Created and lead a team of marketing experts to develop and shape agency strategy
• Developed an internal agency assessment tool to develop this new required capability
• Carried out an assessment of all major agency networks across the region
3.
RESULT
Shake developed a strategy for its creative agencies which included the rollout of a new agency selection process, the development of new agency evaluation criteria and compensation practices. This strategy was executed by the company and is on target to deliver an additional 10% value creation.
IMPROVING THE PROFITABILITY OF A FINE FRAGRANCE BRAND
1.
SITUATION
A fine fragrance company needed to improve the profitability of their brands. While their marketing and sales approach had made many of their brands successful in the marketplace, the company was not making the levels of profit it should have.
2.
INTERVENTION
An internal and external assessment of the companies and competitor brands identified that the total delivered costs were much higher than their competition were experiencing and that the biggest single cost driver were the packaging costs. These costs had been built in at the design stage where purchasing had no influence or control. A process was designed to allow purchasing to influence right at the design concept stage and TDC (Total Delivered Cost). Targets were established as a success factor in the initiative process.
3.
RESULT
Through these process changes the organisation were able to save over $20million and improve profit margins by 15%.
SUPPORTING THE INNOVATION PROCESS
1.
SITUATION
An R&D department in a cosmetics conglomerate had fallen behind on the key milestones for the development of a new hair colour formulation. If they failed to deliver against this milestone the company would have a gap in their innovation pipeline which could set them far behind the market and their competitors.
2.
INTERVENTION
Following a detailed assessment of the market we recommended a supplier with whom the client could develop an alliance. Key aspects of the relationships needed to be negotiated on before work could begin including confidentiality, intellectual property and supply arrangements.
3.
RESULT
The client was able to develop a product within the required lead time and the project continued to launch on time. The relationship today remains a strategic one that has maintained the company at the forefront of the market with its new products.
PROCUREMENT TRANSFORMATION OF A FINANCIAL SERVICES COMPANY
1.
SITUATION
A major financial services company needed to overhaul their approach to non-technology spending in EMEA. Historically Procurement were delivering at 1% savings on this total spend, significantly below competitive benchmarks across the sector.
2.
ACTION
Work was required across all sections in the business through organisation redesign, improved sourcing capability, updated policies and procedures and enhanced client and supplier relationships.
Examples of specific work as part of this programme included;
• Assessment of the spend, opportunities were identified and presented to key stakeholders
• Sourcing strategies for key products & services were developed and executed
• A training programme was developed and executed for the region to include strategic sourcing and negotiation as key areas to improve capabilities
• Development of a new forecasting system to improve reporting of results across the region
• Development of the vision for a new non-technology sourcing group
• Development of a new recommendation process
3.
RESULT
19m$ savings had been achieved by the company in the year before we were engaged. In the 1st year we identified and achieved 57m$, in year 2 – 91m$, and finally in the last year 100m$ +.Their Procurement Division has been able to transform its reputation from being a purely administrative department to being one that creates true value for the company.
