Cost optimisation in the consumer goods industry: Valensina
Products: The manufacture and distribution of non-alcoholic beverages of all kinds, in particular soft drinks.
Revenue: €150 million (2013)
Employees: 2030 (2014)
Optimisation measures
- Analysis of supplier relationships
- Identification and qualification of new suppliers through market research
Topics covered:
- Purchasing conditions
- Procurement organisation and the procurement process
- Packaging: Caps, labels, PET bottles, adhesives
- Services: Facility Management, Logistics
- Overheads
Initial situation:
Valensina GmbH is a leading brand manufacturer and distributor of fruit juices and juice drinks. In addition to the production site in Vechta, the Valensina Group includes Wolfra Kelterei GmbH in Erding and FSP Frischsaft FRISCHE Produktionsgesellschaft. The company, headquartered in Mönchengladbach, markets a broad portfolio of attractive branded fruit drinks in both the chilled and ambient food retail sectors.
Solution:
The main objective of the project was the sustainable optimisation of purchasing conditions. To achieve this goal, existing supplier relationships were to be analysed objectively, and new suppliers identified and qualified. The project team from Kloepfel Consulting was also tasked with identifying optimisation potential within the purchasing organisation and its processes. The large number of different items, along with the high demands of the food industry, resulted in significant project complexity and thus a genuine challenge for the project team. The topics covered primarily related to packaging, logistics, and overhead costs. While the client's purchasing department had conducted tenders in the past, Kloepfel Consulting's market research enabled the identification of many additional suppliers. Furthermore, topic-specific procurement processes were developed with the involvement of the purchasing department.
The open and transparent communication between customer purchasing and the project team is worth mentioning, not to mention with all relevant specialist departments at the three locations. Purchasing was always closely involved in every project topic, so that an optimum result was achieved in joint supplier negotiations. In this way, full acceptance within the purchasing organisation was achieved after just a few weeks. This facilitated the already independent working methods of the project team and thus relieved the customer's purchasing organisation in the processing of strategic purchasing issues, while at the same time ensuring sustainable project success. The product groups covered ranged from closures, labels, PET bottles and adhesives to facility management and logistics services. Despite the challenges mentioned, savings were achieved after a short period of time, most of which were realised with existing suppliers. In addition to these significant effects, the purchasing organisation also benefited in the longer term from the methods developed, so that the customer is also optimally positioned for the future.
