Case 1.e-Sourcing help client to realize cross functional team work while achieving 15% cost saving for marketing material
As the market leader, A company is now facing the rivals increasing from competitors and investment pressure coming of Consumer Market.
- Existing control stores over 3,000, cost ratio of POS material is increasing
- Market investment increased rapidly, another 3,000 stores have been planned in next 5 years
- POS is now handled by marketing team, simply procured by category
- Lots of POS materials and suppliers, no purchasing process
- Helped client to launch e-Sourcing platform and standardized the sourcing process
- Specified the role & responsibility of purchasing and marketing
- Provided training session to internal stakeholders and external suppliers on e-Sourcing system
- Streamlined sourcing and approval process, so that shortened the new material introduction lead time from 14 weeks to 6 weeks
- Optimized supplier base from 28 suppliers to 5 suppliers, largely improved purchasing efficiency and effectiveness
- Reduced cost of material by 15%, equal to 6 million RMB per annum
- Highly increased the resource utilization of marketing and purchasing departments