A global petrochemical company retained ProProcure to carry out a detailed and in-depth analysis of their marketing collateral supply chain. The resulting report was developed using ProProcure’s benchmarking service. It identified several areas where the client could achieve efficiencies, including cost savings of at least 34% across one of the more complex marketing spend categories.
The client is one of the largest and most recognised petrochecmical brands in the world, operating in over 90 countries and employing more than 90,000 people. The organisation, which operates under a de-centralised marketing structure, has considerable marketing procurement requirements and, like all multi-national brand owners, it must achieve multi-national brand communications through consistent and high quality marketing collateral.
To feed this global marketing machine, the marketing collateral supply chain is hugely complex, and the range of items required spans die-cast scale models of cars to items of clothing such as baseball caps.
With such a complex, convoluted and multi-layered supply chain, the client knew there were plenty of opportunities to not only save money and streamline procurement processes but also to reduce the supply chain base and gain much greater control over how the brand is represented.
However, they did not have the appropriate resources in-house to carry out the research needed to identify and qualify the opportunities. Additionally the client recognised they would not be able to get the full, independent story from incumbent suppliers and distributors.
After a competitive tendering process ProProcure was selected to conduct the research project, and to act as consultants, to not only investigate the strengths and weaknesses of the existing supply chain but to recommend more efficient and long-term solutions.
The Client’s Business Objectives
- Reduce product procurement cost
- Streamline complex supply chains
- Gain better brand control
The ProProcure solution
The benchmarking service, for the client, consisted of three core elements:
- Carry out an in-depth analysis of the existing supply chain and an comparison between the client’s practices and best practice supply chain models
- Make recommendations on how best to adapt current procurement processes to maximise efficiency and visibility, to ensure multi-national brand protection, and to achieve measurably reductions in cost, risk and waste across the client’s global business
- Educate the incumbent procurement team about the global marketing materials purchasing sector, including providing relevant and current insight into supply and distributor strategies and tactics.
Return on investment (ROI)
The benchmarking service delivered a detailed report to the client, the highlights of which were:
- Predicted cost savings of at least 34% across one of the more complex areas of spend
- An action plan that would reduce the number of suppliers, which would reduce complexity, whilst increasing the quality of the collateral produced at an in-market level
- Streamlined supply chains, reducing the layers within the chain and thereby reducing complexity
- Significantly better informed internal champions, at both board level and in-market, who are better able to add value in the marketing materials procurement area of the business.
Hear from the client
The Senior Management Project Sponsor says:
“Key to the success of this report was the in-depth and often inside knowledge ProProcure were able to provide about how manufacturers, suppliers, trading companies and distributors function within the supply chain. Also, and crucially, ProProcure also outlined what we could do without”