Global CPG Leader Adopts a New Procurement Operating Model

In this case study a multinational consumer packaged goods (CPG) manufacturer wanted to transform its procurement and streamline source-to-pay (S2P) processes. The company had near-zero focus on its indirect spend and a reactive support model that prevented it from capitalizing on global synergies.

CPG Manufacturer Achieves $1 Billion in Savings with GEP

GEP developed and deployed a new operating model to centralize procurement across the globe and streamline the company’s end-to-end procurement processes.

Objectives

  • Transform S2P process by designing a closed-loop approach
  • Maximize synergy through an end-to-end and integrated delivery model across services and technology
  • Drive procurement innovation through a mutually beneficial partnership
  • Utilize best-in-class indirect category strategies to deliver optimal savings
  • Perform in the top quartile of procurement capabilities across peer companies

Approach

  • Developed new organizational model, KPIs, policies, buying channel strategy, communication plan and technology road map
  • Created organizational design and restructuring plan to centralize multiple procurement units across the globe
  • Designed global, regional, and local category models
  • Implemented GEP SMART with built-in robotic process automations (RPAs) to gain operational efficiencies
  • Leveraged GEP Market Intelligence COE to develop actionable insights/benchmarks for local markets

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