
Consumer needs and preferences are constantly evolving, and the food and beverage (F&B) industry is particularly sensitive to these shifts. Manufacturers must maximize cost efficiency and quality while staying agile in responding to market trends and executing differentiated sales and marketing strategies.
Project Background
Our client, a leading domestic F&B manufacturer with a long-standing history, has maintained a stable market share. However, the company faced several obstacles in adapting to rapidly changing consumer trends and increasing competition. These included entrenched mindsets among employees, limited supplier networks due to long-term relationships, and insufficient profits to support expanded investments. Recognizing these barriers to sustainable growth, the executive leadership initiated a procurement transformation program as a starting point for change and cash generation.
Revolutionizing Procurement Processes Across All Cost Elements
Given procurement’s significant share of costs and its connections across all operational areas, enhancing procurement capabilities required a company-wide effort. Looxent, with its expertise in driving operational turnarounds, led the transformation initiative.
The project addressed all cost elements, including direct costs such as raw materials and packaging, as well as indirect costs like marketing, promotions, and outsourcing. The aim was to establish a virtuous cycle of rapid cost savings and reinvestment in growth initiatives.
Looxent introduced systemic changes across the entire procurement process, including scope definition, market analysis, competitive bidding, contract-to-delivery management, settlement, and post-performance evaluation. This approach generated visible short-term results while driving long-term, sustainable process improvements.
Integrating with Global PMI for Maximum Impact
During the project, the client underwent an acquisition by a global corporation, leading to the implementation of a Post-Merger Integration (PMI) initiative. Looxent played a pivotal role in procurement-related PMI activities, collaborating with the parent company and the client’s employees to:
- Establish new procurement policies.
- Incorporate global standard processes.
- Define mid- to long-term cost-reduction targets and strategies.
By aligning procurement transformation with the parent company’s PMI goals, Looxent accelerated the integration process, ensuring successful PMI execution and organizational stability.
Key Outcomes
The procurement transformation delivered three significant outcomes:
- Cost Savings: Identified opportunities for an average 7% cost reduction in the targeted spend categories, translating these into actionable initiatives. The client achieved a 100% implementation success rate, with further gains realized through global PMI integration.
- Expanded Supplier Pool: Established a global supplier network, enabling a broader procurement strategy and contributing to the parent company’s global supply chain.
- Improved Compliance: Enhanced compliance levels by optimizing procurement processes, leading to a more transparent and rational supplier management framework.
Extracting Additional Value with a Fresh Perspective
“Even in areas where we believed we were performing well, we found opportunities for improvement. Having consultants who worked alongside us with genuine dedication allowed us to uncover more potential,” remarked the client’s senior executive.
Looxent’s success in this project stemmed from its comprehensive approach, focusing on:
- The breadth of cost categories addressed.
- Company-wide engagement.
- Delivering measurable impact at scale.
- Swift execution and sustained results.
Through relentless inquiry and innovative problem-solving, Looxent demonstrated the power of a fresh perspective in unlocking additional value for the client.
Consumer needs and preferences are constantly evolving, and the food and beverage (F&B) industry is particularly sensitive to these shifts. Manufacturers must maximize cost efficiency and quality while staying agile in responding to market trends and executing differentiated sales and marketing strategies.
Project Background
Our client, a leading domestic F&B manufacturer with a long-standing history, has maintained a stable market share. However, the company faced several obstacles in adapting to rapidly changing consumer trends and increasing competition. These included entrenched mindsets among employees, limited supplier networks due to long-term relationships, and insufficient profits to support expanded investments. Recognizing these barriers to sustainable growth, the executive leadership initiated a procurement transformation program as a starting point for change and cash generation.
Revolutionizing Procurement Processes Across All Cost Elements
Given procurement’s significant share of costs and its connections across all operational areas, enhancing procurement capabilities required a company-wide effort. Looxent, with its expertise in driving operational turnarounds, led the transformation initiative.
The project addressed all cost elements, including direct costs such as raw materials and packaging, as well as indirect costs like marketing, promotions, and outsourcing. The aim was to establish a virtuous cycle of rapid cost savings and reinvestment in growth initiatives.
Looxent introduced systemic changes across the entire procurement process, including scope definition, market analysis, competitive bidding, contract-to-delivery management, settlement, and post-performance evaluation. This approach generated visible short-term results while driving long-term, sustainable process improvements.
Integrating with Global PMI for Maximum Impact
During the project, the client underwent an acquisition by a global corporation, leading to the implementation of a Post-Merger Integration (PMI) initiative. Looxent played a pivotal role in procurement-related PMI activities, collaborating with the parent company and the client’s employees to:
By aligning procurement transformation with the parent company’s PMI goals, Looxent accelerated the integration process, ensuring successful PMI execution and organizational stability.
Key Outcomes
The procurement transformation delivered three significant outcomes:
Extracting Additional Value with a Fresh Perspective
“Even in areas where we believed we were performing well, we found opportunities for improvement. Having consultants who worked alongside us with genuine dedication allowed us to uncover more potential,” remarked the client’s senior executive.
Looxent’s success in this project stemmed from its comprehensive approach, focusing on:
Through relentless inquiry and innovative problem-solving, Looxent demonstrated the power of a fresh perspective in unlocking additional value for the client.