Client Challenge
Over the past 10 years, the client has outsourced the daily category and purchasing operations for “Fruit & Vegetables” to a partner. This category represents the client’s largest and most important segment, both in terms of concept and market impact.
- The partner has managed pricing and central campaign activities with limited involvement from the client. The pricing and campaign strategy has also been unclear.
- There has been a lack of documentation, frameworks, and process descriptions. In addition, there is a high degree of dependency on individuals, which poses a risk.
- Order handling and claims are managed inconsistently, and clear processes for these areas are missing.
The client intends to establish a centralized agreement and pricing model, and to take greater ownership of the “Fruit & Vegetables” category — with the goal of managing it internally rather than outsourcing it. The new agreement will also be accompanied by organizational and process efficiency improvements.
Assignment
- Map the current processes and organization related to Pricing & Campaigns, Internal Sales, and Key Account Management at the partner to build a deeper understanding and lay the foundation for the new organization.
- Analyze how the client should manage the implications of the new agreement and organizational setup; and, together with the current-state mapping, provide recommendations.
- Develop the concept for future campaign work and propose a revised campaign process.
- Given the strategic importance of the category, the assignment required active engagement from multiple stakeholders including sales, procurement, and logistics managers.
Client Benefits
- Reduced reliance on external supplier and strengthened internal control and ownership.
- Greater transparency in ways of working and
processes. - Improved risk management through reduced individual dependency and clearer processes.
- Deeper understanding of what is required to achieve the goal of owning the “Fruit & Vegetables” category internally, and how the organization and processes can be optimized.
- By gaining better control and ownership, the client was able to make faster decisions and run more targeted campaigns – ultimately
leading to increased sales. - Improved end-to-end control and visibility across the entire value chain, from origin and supplier to the end customer.