The Manufacturing Group is one of the leading business groups in the Kitchen Manufacturing industry in Saudi Arabia. The company is built over a span of – decades with a vision to participate in the KSA business growth through setting up success modules for product production plants and innovative developments. They have grown into an extraordinary business group with top level sister companies forming a well-connected backward integration.
The company selected ADR to support a procurement change project and introduce the sourcing concept across all lines of business. The change programme was supported by shareholders and senior management and the procurement staff embraced the challenge of implementing newly introduced sourcing processes, target setting and measurement.
ADR were mandated to implement a transformational programme to bring about significant procurement improvement, introduce robust processes and deliver sustainable cost savings to the business. Procurement was re-engineered to separate transactional activities from core procurement and cost management and a robust strategic sourcing process was introduced.
The key challenge of the project as envisioned by the client, was to optimise the procurement and supply function across the board, leaning such improvements into production and eventually sales. Through close interaction and on-site coaching, significant and sustainable cost improvements were delivered.
“Initially, I was hesitant that the improvement opportunity identified by ADR would be achieved, but after the introduction of structured cost management covering a range of best practice tools and techniques, we started to deliver sustainable cost and value improvements. In a short-time we exceeded our targets. The ADR introduced processes and practices continue to deliver benefits to the business today.”
Procurement successes were made visible in the business through the engagement of internal stakeholders in the sourcing process, communication of targets and reporting of accomplishments and benefits. The procurement change project delivered significant and lasting changes in the ways of working in procurement, stakeholder buy-in and support and cost improvement.
Such operational improvements were in the form of working capital optimization, supplier network rationalization, inventory optimization and waste minimization. It is evident now that these improvements have had direct impact on quality production, value management, sales and customer service.
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Support a procurement change project and introduce the sourcing concept across all lines of business. To optimise the procurement and supply function across the board, leaning such improvements into production and eventually sales.
The procurement change project delivered significant and lasting changes in the ways of working in procurement, stakeholder buy-in and support and cost improvement.