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Strategic volume bundling for better conditions
Procurement alliance between Fressnapf and Pets at Home
Fressnapf and Pets at Home initiated a procurement alliance for the joint tendering of snacks and bedding. A standardized specification grid made it possible to identify cost drivers and realize savings.
About the company
With sales of over 2.3 billion euros and more than 12,000 employees in Germany, Fressnapf is Europe’s leading supplier of pet supplies. Together with the British company Pets at Home, a procurement alliance was set up to improve procurement conditions in selected product groups. The aim was to realise synergy potential and achieve significant savings through a structured tendering process for snacks and bedding.
The project
The challenge
As both companies grew, the number of product groups and suppliers increased continuously. As a result of different product specifications, the product ranges were not comparable, which drove up procurement costs for overlapping products. In addition, synergy potential between the two market leaders had not yet been fully leveraged. Together with valantic, a procurement alliance was to be established in compliance with the legal framework and central product groups were to be jointly tendered.
Consulting approach
1. Analysis and standardization
- Review of procurement data and product specifications of both companies
- Development of a standardized specification grid for article comparability
2. Identification of tendering potential
- Development of a calculation model to determine comparable SKUs
- Selection of similar articles in snacks and bedding
3. Execution of joint tenders
- Recording relevant cost drivers based on the defined specifications
- Implementation of the tender to improve conditions and transparency
Solutions & results in detail
A jointly developed specification grid allowed for the clear identification of items within the same product range and revealed key cost drivers. Based on this, targeted tenders were carried out in the snacks and bedding product groups. This enabled operational synergies to be leveraged and relevant savings to be achieved.
Conclusion
Fressnapf and Pets at Home took the next step in their strategic cooperation with valantic. The cross-border procurement cooperation strengthened the joint market position and led to sustainably improved conditions.
Your Contact
Daniel Belka
Partner & Managing Director
valantic