Case study: GFR Savings Delivery Programme

Company overview:

  • 750+ stores across 9 countries
  • €600m Cost of Sales in scope
  • Key categories include Food, Apparel, General Merchandise

Business challenge:

The Board hired 4C to run a holistic transformation of the GFR procurement function covering sourcing processes, strategic category planning and savings delivery. GFR included hard goods, textiles and food procurement totalling €600m+ spend​.

Our approach:

  • Full spend diagnostic undertaken to understand buying cycles, maturity of procurement execution and process effectiveness
  • Strategic category planning was used to identify cost and process efficiency savings
  • Benchmarking and advanced cost modelling techniques conducted on key spend areas to create negotiation leverage
  • Strategic negotiation planning sessions were run with the existing procurement team resulting in 4C supporting negotiations in-the-room in both NL, China and Bangladesh

Value delivered:

  • 1% margin improvement delivered
  • Delivered new global procurement structure aligning NL and FE offices
  • Implemented advanced should-cost and tender evaluation modelling enabling greater negotiating leverage and increased savings
  • Training and roll-out of new Procurement Processes across all relevant business functions (200+ staff) and upskilling of Procurement community