The following case studies illustrate how we have helped our clients to improve their supply chains and ultimately their profits.
Capital Goods Case Study
Background: A major U.K Retailer
The objective: To consolidate the capital goods spend for 3 brands for a £10MM category, conduct a Spend Analysis, categorise the spend, identify the opportunities, negotiate more favourable terms.
Work undertaken: The initial phase was consolidating the 3 brands capital goods spend, analysing what they spend, on which items and with whom. Once complete, the spend was categorised by product type both by brand and a consolidated basis.
Further analysis of the cleaned up data, highlighted to a number of consolidation and cost saving opportunities. These were then ranked into value and probability of success. The Top 3 were identified and managed on behalf of the client.
Each of the 3 categories identified presented a different set of challenges;
Category 1: A long standing supplier who had the monopoly on the largest spend item, with little visibility on the cost structures
Category 2: Multiple products and multiple specifications from different suppliers
Category 3: A common supplier charging different terms to the 3 operating companies
In each case, a greater degree of visibility was achieved, enabling a simpler more effective route to market, with significant cost savings achieved in Category 2 & 3 (over 10%). Category 1 is still work in progress due to the complexity involved.
Spend Analysis and Category Management Case Study
South East Asian Client
Background: The countries 2nd largest Food and Beverage Company operating over 500 outlets, where the 3rd largest operator bought out the number 2 player.
Work undertaken: This is an on-going program. Through the major acquisition there were in effect 2 operating companies working on 2 very different purchasing systems. The initial stage was to get visibility of what each group was doing in terms of its spend, their key categories and understand whether it was locally procured or from overseas.
On completion of the spend analysis, one was able to group the "80:20 spend" into 10 main categories. The visibility achieved through the spend and category analysis, has enabled a series of consolidation opportunities which are now starting to deliver cost and supply benefits.
The spend and category analysis has also enabled us to start to develop clear and coherent category plans on the 3 of the Top Categories.
Work will continue with this company through Q4 2014 and the first half of 2015.
Financial and Operational Due Diligence Case Study
Middle East Private Equity
Background: A Merger and Acquisition: To evaluate how robust the business was from a sales, market potential, financial and supply chain perspective.
The client a major Middle East Private Equity group (nearly $1 billion in assets) were interested in acquiring a sizeable but minority stake in a company in the Retail sector. The engagement entailed a full due diligence process covering:
- The organisation and management capability
- Robustness of the Operations
- The brands potential and future sector growth
- Financial due diligence
- Market visit and tour of a number of the outlets
- Customer profile and marketing programs
Based on the due diligence process it was decided not to invest in the business.
Software Tender Case Study
Background: A U.K. Service Provider
The objective: The development of a Facilities Management application in the Service sector.
Work undertaken: To write the brief for a software application to be used on a tablet format for field service personnel.
The RFP was issued to a number of companies qualified to design and build the app. The proposals were evaluated on the company's capabilities to deliver against the brief.
A short list of companies was drawn up and meetings conducted with the most promising technical proposals and bids.
In light of new technical data obtained during the process, the specification was modified to develop a more robust, field friendly application.
The process was brought in significantly under the originally planned capital budget.
Franchising - Operations Manual Case Study
Background: Small start-up wanting to Franchise in the UK
A small start-up company of Veterinarian Nurses based in the North East of England, had been operating for 12 months and had built a good solid business model. They decided to Franchise in the UK and approached us to write their Operations Manual. We decided to take this job on to provide our more junior members of staff with the experience of writing an operations manual.
The initial phase was asking exploratory questions of the Nurses as they needed coaching on exactly what the manual should contain. All relevant material was obtained and used in the manual.
The outcome was an excellent operations manual which made this small business ready to start franchising in 2017.
“Thank you so much for producing our Operations Manual, we couldn’t have done this on our own. We feel we are now ready to start Franchising”
Christine Murphy – Veterinary Nurse