A&C helps global company achieve $43M+ savings
A&C Associates has been busy boosting the fortunes of one of the largest and most successful companies in the Middle East and North Africa region (MENA). Operating 1700+ quick service, casual and fine dining outlets across 13 markets, the global firm wished to reduce cost and increase efficiencies across its global supply chain in line with recommendations made in a McKinsey report.
Brief - A lack of structure and visibility was severely hampering the company’s profit and growth. Working alongside the consultants, A&C helped provide the transparency and knowledge needed to transform its organisational structure and implement a modern supply chain group that drives efficiencies and eliminates waste.
Approach - In using the framework of the consultant's report, A&C helped assess and implement the tools needed to improve outcomes across the business. This involved:
People - Assessing the team's capabilities
- Reworking the organisational structure
- Introducing and implementing Strategic Sourcing Group
- Unlocking value in the supply chain
- Developing teams with coaching and support
Functional - Conducting a full spend analysis
- Implementing proper category management
- Developing category strategies & commodity knowledge
- Setting KPI objectives
- Implementing cost tracking tools
Cultural - Improving collaboration between the company and its franchisors
- Driving discipline, communication and consistency of approach
The detailed results of this information enabled us to assess spend across the various brands and markets and identify the changes that would achieve positive results.
Outcome - On completion of our assignment, we had converted $27M of opportunity and developed initiatives with $56M expected in-year savings. This was achieved using a mixture of RFPs, direct negotiations and online bidding and reorganising of the company, to include:
- Splitting the supply chain from procurement activities
- Recruiting new personnel to key roles
- Reducing net headcount and G&A
- Creating four major clusters to conduct in-country procurement
“ Our knowledge and expertise of the FMCG and fast-growing economies enabled us to find a strategy that was right and would work”. Andy Skowronski