UK wine and spirits retailer

GFR and GNFR Cost Review Program

A leading UK retailer, specialising in fine wines with 211 stores across the country. In 2015, the business acquired an online wine retailer. The retailer had a budget deficit of circa £1m in year and were introducing budget challenges for the next financial year. 4C were chosen to conduct a full cost review of the GNFR and GFR spend to identify the areas of opportunity for both organisations.

Opportunity Diagnostic

  • deep dive review of budgets and contracts vs 4C benchmarks and validation workshops held with stakeholders
  • identified savings of £2.1m against a GNFR spend of £19m


GNFR

  • implemented a multi-category strategy approach across all BUs, with market reviews
  • RFxs/eAuctions and supplier negotiation


GFR

  • ran supplier partnership programme across non-core ranges, generating efficiency enhancements and improved way of working

value delivered

  • exceeded savings target significantly by 62% – £3.4m vs £2.1m
  • increased control across the organisation by implementing PSLs and framework agreements
  • implemented supplier efficiency savings by consolidating the supplier base across both organisations
  • built internal credibility for procurement