Sourcing project on key food segment for an International Entertainment Chain
Sourcing Project on Telematics
Sustainable value created
- Identification of internal needs and best market offerings from deep internal and external analyses
- A detailed breakdown of the TCO components of the spend category delivering insights for advanced fact-based negotiations
- A clear long-term category strategy supported by the organisation
- Realisation of sustainable TCO savings of over 50% on the spend category telematics
Client Profile
One of the world’s largest private trading groups in the energy sector.
Project Scope
The procurement function was challenged by new technologies. The advantages of telematics were already proven to be relevant for our client, but their current pioneer (device) supplier was able to create a virtual monopoly that he was further expanding. While most business units had the same supplier, it soon became clear that prices and costs varied widely across countries for the same functional need. The project scope was to identify possible synergies and realise significant savings, supported by a clear long-term category strategy.
Hudicor’s Approach
The strategic sourcing approach was built on cross-functional teams; comprehensive internal and external analysis to identify internal requirements and discover market opportunities; Total Cost of Ownership; and fact-based analysis.
We supported the global telemetry category team throughout the entire project. Instead of implementing a closed, expensive procurement solution, we opted for an open, competitive model. By doing so, the company can maximise the value of new IoT innovations while minimising total costs.
Realisation of TCO savings of over 50% and a clear category strategy to maintain future commercial flexibility
Interested in accelerating procurement performance and savings?
