SUCCESS STORY

Transformed procurement function

Strengthening procurement at a beverage manufacturer

 

  • Delivered greater control, stronger relationships, and sustainable value

Outcomes

strategic relationships

Tailored supplier relationship management (SRM) policy strengthened partnerships

financial control

Through new budgeting, purchase price variance (PPV), and commodity tracking systems

performance visibility

Introduced KPIs to measure procurement effectiveness and support continuous improvement

Category management

A structured process provided a framework to manage spend and drive value

tools & governance

Consistent policies, procedures and templates led to better cross-functional collaboration

BACKGROUND

This UK-based branded soft drinks company was established in the early 1900s and grew around a popular cordial now sold in over 70 countries.

As the business expanded, it shifted its focus to sales and marketing. Most of its extensive range is now produced through a network of manufacturing partners, primarily based in the UK.

the challenge

The company’s procurement function was underperforming. It lacked resources, strategic direction, and the necessary skills to support the business. With a heavy reliance on co-manufacturing partners, this resulted in weak, transactional supplier relationships, inconsistent contract coverage, poor cost control, and production issues. The business was already under pressure from market volatility, and the lack of procurement control further impacted product availability and costs.

SOLUTION

Procure4 recommended a Procurement Enhancement Programme (PEP) to strengthen the procurement function and its role within the wider business. The improvement work was structured around five key areas:

  • Sourcing and Cost Management
  • Supplier and Contract Management
  • Process, Systems and Controls
  • Data Management
  • Organisational Design

Co-working groups were set up for each area to ensure buy-in, and once the scope and schedule were agreed, Procure4 led the transformation. Regular senior leadership engagement was maintained through ongoing Steerco sessions to keep momentum and alignment.

P4106

Procure4 managed the end-to-end process with full collaboration and transparency.

This enabled us to leverage our business and deliver the optimal total value chain solution whilst retaining the strategic supplier benefits we were seeking from a collaborative relationship.

Supply Chain Director

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