Cost reduction and supplier governance
The Challenge
The focus was on cost reduction and supplier governance particularly within the supply chain. Victoria Beckham’s travel programme was getting out of control, and multiple suppliers used it within their supply chain. There was no travel policy or booking tool to help manage costs. Within the supply chain, multiple couriers were being used, diluting discounts and performance.
There was no warehousing strategy to allow for growth. We also reviewed the IT costs ensuring SaaS contracts were optimised and renegotiated. As there was no procurement function and the CFO required quick action to control costs, BridgePro’s PaaS service was contracted and key KPIs agreed to measure success from the outset. The discovery phase was minimal as the importance was on realising savings as quickly as possible.
Consolidate and agree preferred supplier agreements for core spend areas
5x
ROI target (savings vs fees)
6m
month RFP completion timeframe
£250k
Savings target
The Solution
BridgePro assigned procurement experts to manage project delivery for travel, packaging, warehousing, and logistics.
The first step for all projects was to complete the discovery and analysis phase. For travel, we first embarked on sign-off on a custom travel policy, from there we went to market for the best fit travel management company and online booking tool. A mandated policy was softly introduced to the business, and adoption was critical for success. Utilisation and cost avoidance was tracked to determine success.
RFPs were conducted for other categories, giving current suppliers the opportunity to rebid against their competitors. The packaging tender was all about simplifying the packaging configurations, whilst improving quality.
The Outcome
10x
ROI achieved (savings vs fees)
90%
adoption of new travel programme
£500k
savings achieved
“BridgePro understood how luxury retail operated and built strong relationships to help implement some of the much needed cost saving initiatives and quickly realised savings when we needed them”