Spend Analytics and Supplier Management

Spend Analytics and Supplier Management

Leading Australasian food manufacturer Goodman Fielder International (GFI), responsible for numerous household brands including Meadow Lead, Praise, White Wings and Helga's engaged Charles Kendall to analyse expenditure and identify cost-base reduction opportunities across its manufacturing operations in Papua New Guinea.

The Challenge

  • Review and report on GFI’s existing supplier spend, risk exposure and potential cost savings;
  • Assist in evaluating cost base and centralising categories to Sydney hub;
  • Conduct on-site evaluation of Papua New Guinea operations;
  • Provide insights to drive cost savings and efficiency improvements.

Our Approach

  • Categorise and analyse $100M+ of annual expenditure to determine inefficiencies and identify cost-base reduction opportunities;
  • Review existing supplier agreements and segment according to Kraljic Model-based methodology;
  • Categorise savings into short, medium and long-term initiatives, including savings pipeline and delivery plan;
  • Manage and collaborate with internal stakeholders to ensure understanding and cultural alignment.

Outcomes

  • Identified 26 cost-base reduction opportunities delivering an estimated 7-15% reduction in annual expenditure;
  • Categorised savings into quick wins, medium-term gains and strategic savings;
  • Determined the required resources and offered recommendations to realise these savings and achieve further gains in procurement efficiency;
  • Delivered a detailed scoping report to GFI’s Chief Procurement Officer with implementation activities already being planned.
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