Strategic procurement optimization

Indirect procurement at TOM TAILOR transformed

As part of the group-wide “Core” transformation program, TOM TAILOR worked with valantic to achieve seven-figure savings in indirect procurement. Within five months, processes, budgets and contracts were systematically optimized in over 15 product groups – despite a heterogeneous ERP landscape and high cost pressure.

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About the company

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The TOM TAILOR Group is an international fashion company with almost 7,000 employees, around 1,450 sales outlets and an annual turnover of 950 million euros. In a five-month project with valantic, indirect procurement was strategically optimized. The result: seven-figure savings through targeted measures in over 15 product groups – despite a heterogeneous ERP system landscape and high cost pressure, which led to the introduction of the group-wide optimization program “Core”.

The project

The challenge

TOM TAILOR worked with different ERP systems in several Group companies. This led to limited data transparency in indirect procurement. At the same time, there was great pressure to implement a Group-wide optimization program. The aim was to realize Group-wide savings in the nine-digit procurement volume and to strategically restructure indirect procurement in 15 product groups.

Consulting approach

1. Data preparation and potential analysis

  • Implementation of a 4-week analysis to create data transparency
  • Temporary deployment of a team of over 5 consultants for structured preparation

2. Benchmarking and best practice identification

  • Comparison of cost and process structures between Group companies
  • Identification of internal best practices and company-wide cost leaders

3. Implementation and enforcement of measures

  • Renegotiation with existing service providers incl. use of framework agreements
  • Application of demand management to reduce requirements (e.g. budget cuts)
  • Process optimization in cross-sectional areas such as travel management
Tom Tailor_Consulting_approach

Solutions & results in detail

Within five months, TOM TAILOR was able to realize a seven-digit savings volume together with valantic. This was made possible by data transparency, benchmarking and the company-wide implementation of proven procurement practices. Renegotiations, targeted demand management and the optimization of internal booking and administrative processes were particularly effective.

Conclusion

TOM TAILOR strengthened strategic control in indirect procurement with valantic. The structured approach creates the basis for permanent cost control and efficient decision-making processes throughout the company.

Your Contact

Daniel Belka, Partner & Managing Director, valantic Division Smart Industries

Daniel Belka

Partner & Managing Director

valantic