Due to longstanding practical experience in the consumer goods industry, HÖVELER HOLZMANN CONSULTING’s consultants identify just the right savings lever and optimization potential in your procurement and supply chain management.
Our analysis of the consumer goods industry
The consumer goods industry is up against major challenges. Due to ongoing consolidation of the traditional sales channels in food retailing and intensive competition on the manufacturers’ side for points of contact between brands and consumers, prices and margins are increasingly coming under pressure. That’s why successful consumer goods manufacturers are regularly closely reviewing their value chain, especially sales-oriented processes and interfaces to trading partners in order to pinpoint optimization potential. However, our project experience shows that a lot of cost savings potential can still be tapped, especially on the procurement side of the consumer goods industry. HÖVELER HOLZMANN CONSULTING has longstanding expertise in this sector and has consulted a wide array of companies in the consumer goods industry during extensive optimization projects in procurement and supply chain management.
Enhancing the whole procurement and supply chain management
To further strengthen the competitiveness of our customer – a leading German FMCG company in the beverage industry –, strategic initiatives were launched in all key corporate divisions. Within this framework, the group’s entire purchasing volume should be analyzed in terms of savings potential to safeguard the cost leadership. To meet this challenge, HÖVELER HOLZMANN CONSULTING was enlisted to support the procurement organization. In step one, the purchasing volume of all of the group’s sites was structured and more than 20 product groups were analyzed with regard to savings potential. Based on the potential analyses, product groups were successfully prioritized for optimization and the implementation methods suited for this were defined.
For this purpose, not only were negotiations conducted with all current suppliers, but also programs for partnership-driven cost optimization together with selected suppliers and Europe-wide tenders.
Levers for the project’s success:
- Precise recording of specifications for each product group in collaboration with experts such as packaging engineers
- Consequent optimization of specifications with the objective of minimizing complexity in coordination with the customer’s marketing department
- Analysis of cost structures and upstream supply chains of current suppliers to pinpoint savings potential
- Conducting tenders Europe-wide and subsequent negotiations in several rounds
Results of the project:
- Thanks to tenders and negotiations, savings in the double-digit percentage range were achieved for the eight-digit purchasing volume under consideration
- Optimization of specifications, especially in the packaging product groups, had a major impact on the success of the project
- Thanks to the project with HÖVELER HOLZMANN CONSULTING, cost leadership was secured long-term based on the analysis of cost structures of suppliers of strategic bottleneck product groups