A large consumer products client was committed to increasing spending on Marketing and Advertising as a percent of sales in the current fiscal year. A key concern for the client was that the additional spend would underscore the organization's need for control and efficiency in direct marketing expense (DME). While sourcing and procurement of direct materials was a core competency and mature function for this enterprise, procurement was not a key capability for most of the indirect spend (e.g., DME). Archstone Consulting conducted a review of the client's marketing procurement capabilities to identify areas for improved performance and cost savings.
Global food products company.
Implement the procurement business processes and tools for the Marketing and Packaging organizations. This included improving management controls over procurement activities and realizing improvement opportunities.
Archstone's approach included a comprehensive assessment of the client's Marketing spend and procurement processes and capabilities. This was followed by a focused Strategic Sourcing effort, which included:
After a thorough analysis of the client's procurement processes, organization, governance and capabilities, an aggressive sourcing program was launched. The result of this program was a significant, hard dollar contribution to the client's financial results. By the end of the program, identified savings totaled $3.1 Million, between 4% and 9% of the total Marketing spend.