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Recognizing the need for a more efficient solution, the company implemented Keelvar's Sourcing Optimizer, which provided scenario analysis among other powerful features to help save costs and time.
With Keelvar, the company centralized their procurement operations, reduced manual processes, and gained increased control over their supply chain. By integrating data analysis, visualizations, and market intelligence into their strategy, they were able to rationalize their supplier base and create a common language for sharing information across different regions and internal teams.
As a result, their decision-making process became more consistent, while standardization of their sourcing processes helped reduce cycle times for getting leadership approvals and enabled the company to react faster to changes in the market. Sourcing optimization has helped the beverage company achieve greater efficiency, control, and decision-making in their sourcing processes, ultimately leading to cost savings and improved performance.
“We now have standard elements that can be followed for road transportation events, making it much more efficient for the team, and for leadership,” - Senior Category Manager for Logistics
With over half a billion euros in spend to manage across markets in three regions, executing a winning sourcing strategy for the company is no mean feat – particularly during times of supply constraints, ‘black swan’ events, and relentless volatility.
Challenges Faced and Overcome
Facing external challenges from the broader economy and road transportation markets, as well as internal challenges such as two organizational structure changes, had impacted the company.
The company's previous sourcing strategy was specific to each market or country, and the procurement process was inconsistent with the usage of different tools and methodologies. However, the company quickly realized the need for improvement to remain competitive amid such volatility and worked towards creating a best-in-class, standard sourcing methodology for sourcing road transportation requirements.
Finding the Best Solution for Sourcing Success
Despite the challenges, the company’s sourcing strategy has been successful in the past few years. A significant part of this success is attributed to digital transformation, which has been an important aspect of their strategy change. With Sourcing Optimizer in tow, the company was able to better integrate data analysis, visualizations, and market intelligence into their sourcing processes.
Using modern technology – as opposed to the manual processes and spreadsheets they had prior – has enabled the company to rationalize their supplier base and create a common language across different regions that has helped suppliers and internal teams know what to expect and how things are set up.
The decision-making process is now more consistent, and the teams are equipped with the necessary tools and information to make informed decisions. This standardization has also helped reduce the cycle time for getting leadership approvals, which in turn has enabled the team to react faster to changes in the market.
“I think we have been successful in taking this to such a level. We now have standard elements that can be followed for road transportation events, making it much more efficient for the team, and for leadership,” - Senior Category Manager for Logistics
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