Case study: GFR Savings Delivery

Company overview:

  • 400+ stores
  • 250 subcategories
  • £1bn cost of sales in scope

Business challenge:

Lack of access to commercial data meant buyers were not able to effectively prepare for supplier negotiations. Core sourcing capability was not identifying alternative suppliers restricting competitive tension with long term suppliers who were relatively unchallenged. Core suppliers not treated consistently, and key category decisions lacked customer / market insight. 4C were engaged to build and deliver a cost reduction and margin improvement programme with an ambitious target. 

Our approach:

  • Ran detailed diagnostic to identify and validate opportunities with the team
  • Used our 4MARGIN tool to develop commercial insights from client data to enable data based decision making
  • Conducted procurement training with team to upskill in the key areas of negotiation, eSourcing and supplier sourcing strategy
  • Regular governance meetings with steerco, clear communication to buying team and shared KPI’s to ensure alignment with all team members

Value delivered:

  • 1% margin improvement delivered
  • 1% margin rate improvement on annual sales in year 1 with further 2% on track in year 2
  • Embedded dashboard toolkit providing always on access to data and insight
  • Team training programme delivered resulting in upskilled, motivated buying team