SUCCESS STORY
£9.75M cost savings delivered and identified
Driving Cost Savings and Supplier Performance for a DIY Giant
- Procurement transformation across a national store network
Outcomes
£2M year-one savings
Through rapid procurement transformation across categories and suppliers
£7.75M Additional Savings
Identified through deep spend analysis and contract reviews
improved supplier performance
Through better contract adherence and consistent commercial terms
standardised procurement processes
Streamlined procedures and governance across all stores
BACKGROUND
A prominent UK-based DIY and home improvements retailer, operating a vast national store network, faced challenges in managing procurement costs and supplier relationships.
The company sought to enhance procurement efficiency and achieve significant cost reductions without compromising quality or availability of products.
the challenge
The client faced several procurement challenges. Fragmented processes had led to inconsistent supplier terms, while limited visibility into spending patterns made it difficult to identify opportunities across categories and locations. Contract management was inefficient, compounded by the absence of standardised procurement practices. At the same time, there was increasing pressure to reduce costs without compromising on product quality or supplier reliability.
SOLUTION
EBIT was asked to manage procurement activity across all indirect spend categories, drive business improvement and strategic development across the procurement function and improve stakeholder engagement across GNFR (Goods Not for Resale) categories. Key actions included:
- Conducted a full assessment across all indirect spend categories to map current activities and identify short- and longer-term savings opportunities
- Established a procurement team and function, engaging stakeholders and the wider business to drive positive change
- Implemented standardised procurement policies and governance frameworks to define expectations and hold suppliers accountable
EB101