08 January 2023
Topics in this article
  • Consumer Packaged Goods

With a new CEO, our client-focused on reviving growth. The business began a large-scale transformation program to underpin this ambition, with new senior hires brought in to lead the necessary change.

Proxima was engaged to provide additional capability and capacity to lead the delivery of in-year cost reduction targets and manage BAU sourcing activities. With a team of 90 individuals and an in-scope spend of £4bn per annum, indirect procurement played a big part in the transformational agenda.

Leading the charge with category expertise

We deployed a right-sized and right-skilled team to align to several key indirect spend areas in scope across EMEA and the US, including Marketing, IT, FM, HR, and Professional Services.

Our client valued entrepreneurial behavior throughout the organization, which both encouraged innovation and leaked into inefficient and ill-aligned processes, such as a lack of value optimization through savings not being tracked or embedded into budgets, loss of value due to an overly fragmented supply base, and an inconsistent application of supplier management to retain value post contracting.

In line with these findings, and alongside the cost savings initiatives, we developed a high-level operating model for the procurement function, redesigning the future service framework, functional models, and organization design for their global team to ensure value was retained, post-Proxima involvement.

Results aligned to future success

Throughout the program, we delivered millions $ in-year savings across 25 initiatives, accelerating in-flight projects and identifying new projects to optimize costs.

We also provided insight into crucial marketing and HR sub-categories, which have led to additional activity for the year ahead, and we offered a plan to support the delivery and implementation of the future technology roadmap.

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