Strategic Sourcing and Procurement Optimisation Project on Fuel
Fuel Strategic Sourcing & Procurement Optimisation
Sustainable value created
- The RFP tender resulted in €1.49 million annual savings
- Specification optimised: shift from hybrid diesel to standard diesel
- Increased use of tax incentives to capture additional benefits
- €3.4 million cash impact generated, driven by improved payment terms (€2.1 million) and reciprocity agreements (€1.3 million)
Client Profile
Provider of waste management services in Belgium and the Netherlands.
Project Scope
The organisation operates with a central procurement team, with the opportunity to further develop sourcing practices. Spend management and control are not clearly defined, creating inefficiencies and missed opportunities across categories. A critical spend category, fuel, estimated at €48 million, is still partially decentralised, limiting visibility and leverage. Enhancing transparency, standardisation, and supplier management would further strengthen procurement effectiveness.
Hudicor’s Approach
We initiated a strategic sourcing project on bulk fuel, as well as fuel cards, applying our proven strategic sourcing methodology.
The process began with a detailed mapping and analysis of internal needs, followed by an external market assessment, including one-on-one discussions with suppliers to capture insights on market dynamics and supplier capabilities.
Based on these findings, a tailored category sourcing strategy was developed with a clear focus on overall cost reduction.
The strategy was executed through a structured go-to-market approach, leveraging RFX processes and direct, fact-based negotiations.
This approach ensured strong supplier engagement and positioned the organisation to realise significant total cost of ownership (TCO) savings.
The RFP tender resulted in €1.49 million annual savings and €3.4 million in cash impact
Interested in accelerating procurement performance and savings?
