The Challenge | Strategy and approach | Methodology used | The Outcome |
£1.2billion t/o UK Telco Plc following mergers, acquisitions, rapid growth. Suffered major down turn. Looking to restructure. The Supply Chain Management processes in the company were inconsistent and poorly applied Supply Chain Management underperforming, adding too little value and overheads too high
| Carry out an intensive review of the process Provide specialist procurement and change management interim resources to restructure the processes Aim to significantly reduce transactional procurement costs and costs associated with suppliers Manage change from manual approach to use of JDE
| Defined strategic vision and gained Executive buy in. Developed and introduced new processes & procedures Communicated the changes to all those affected Implemented a programme to replace the manual ordering process with the ERP application (JD Edwards)
| £2.0 m reduction in transactional procurement costs £2m - £5 m annual savings from improved supplier arrangements Supplier database cleaned, 3500 obsolete suppliers removed Warehouse op ex reduction by £250k per annum, £1.0m cash injection selling redundant stock.
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