GUS plc decided to create a separate business from its back-office services (Logistics, I.T, CRM) to attract 3rd party customers as well as service GUS’s core business. The business created – Reality Group – required a step-change in the quality and cost effectiveness of its procurement in order to offer a reliable and cost-competitive service to external customers.
We carried out a procurement diagnostic and delivered firm recommendations which our client was very happy to accept. We formed category management teams to drive cost and quality improvements in over 10 categories of spend, with 50+ separate, procurement initiatives. We “hard-wired” savings targets into department budgets. At the same time, we put in place a professional procurement function.
Within the first 12 months we had recruited a central procurement team and established a procurement strategy with supporting policies in place. We rolled-out standardised processes including a purchase order system and purchase card.
We delivered over £5m pa of savings from category initiatives and £4m+ of productivity benefits.
“A big thank you to you and your team for your excellent work on Reality’s procurement improvement programme. You delivered significant cost savings and established the processes and structures necessary to ensure we will continue to capture savings in the long-term. Key to the project was your dynamism and the creativity you brought to problem solving. Somehow you managed to make the hard work enjoyable and everyone here was most enthusiastic about working with you and your team. I will have no hesitation in recommending you to other organisations.” Ian Grabiner Chief Operating Officer (now COO Arcadia Group) “JMCL has played the key role in introducing the purchasing structure, processes and category management techniques necessary to make ongoing savings and quality improvements.” Paul Gilbert, Finance Director
“A big thank you to you and your team for your excellent work on Reality’s procurement improvement programme. You delivered significant cost savings and established the processes and structures necessary to ensure we will continue to capture savings in the long-term. Key to the project was your dynamism and the creativity you brought to problem solving. Somehow you managed to make the hard work enjoyable and everyone here was most enthusiastic about working with you and your team. I will have no hesitation in recommending you to other organisations.”
Ian Grabiner Chief Operating Officer (now COO Arcadia Group)
“JMCL has played the key role in introducing the purchasing structure, processes and category management techniques necessary to make ongoing savings and quality improvements.”
Paul Gilbert, Finance Director
The business created – Reality Group – required a step-change in the quality and cost effectiveness of its procurement in order to offer a reliable and cost-competitive service to external customers.
