Major Poultry Producer - Procurement Program

Our team led a strategic sourcing program that delivered 22% savings across 7 categories

Situation

Our client was a major poultry producer, supplying fresh and value added products to major retailers and QSR chains. They had seen costs rise dramatically during and after COVID, which had impacted margins. Despite falling commodity prices and easing inflation, input costs had remained high.

Our Approach

Westbourne was engaged to lead a strategic sourcing program across all major spend categories, including plastic packaging, cardboard, ingredients, contract cleaning, laundry, waste management and freight.

We used a 5 step structured sourcing process that involved:

·       Category analysis

·       Supply market review

·       Sourcing strategy

·       Market engagement, either via an RFP or direct negotiations

·       Implementation

As well as running the RFPs and executing new supply contracts, we also worked with our client’s procurement, technical and operations teams over several months to trial new products and services and implement supply changes.

Results

The program delivered 22% savings across 7 categories. This included 29% savings for preformed plastic trays, 27% for plastic film and 25% for waste management.

A highlight was contract cleaning , where a new supplier with extensive experience in the industry was able to clean the plant more efficiently and could offer a lower rate than the incumbent, resulting in 23% savings.