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Procurement optimization: Efficient performance measurement
Procurement Transformation at Intersnack
As part of Intersnack’s procurement transformation, a manual for measuring procurement success was introduced. It provides a clear methodology for monitoring success and has enabled significant savings and optimizations in the national and international network.
About the company
Intersnack was founded in 1968 and is headquartered in Düsseldorf. The company specializes in the production and distribution of snacks and sells brands such as funny frisch, Chio, Pom Bär and ültje. Intersnack pursues a responsible approach with a focus on sustainable raw material sourcing, environmentally friendly packaging and social responsibility along the entire supply chain. The group of companies employs over 13,000 people across Europe and produces at numerous locations. The products are sold in over 30 countries, both through retailers and international partner companies.
The project
The challenge
Intersnack faced the challenge of differing approaches to measuring procurement success across departments and locations. In addition, strong price fluctuations made it difficult to assess procurement performance consistently, leading to variations in performance evaluation.
Consulting approach
Section 1: Introduction
- Defining the objectives for measuring procurement success
- Description of the challenges in success measurement, particularly under conditions of price fluctuations
Section 2: Concept for measuring procurement success
- Clarification of cross-category aspects such as the definition of procurement success, the measurement process, and the time horizon for evaluation
- Clarification of category-specific questions, e.g., how success is measured for raw materials or packaging and which cost components need to be considered
Section 3: Guidelines for measuring procurement performance
- Specific guidelines for measuring success across various categories, including direct materials, raw materials, packaging, and indirect materials such as IT equipment and office supplies
Solution and customer benefits
By introducing the handbook for measuring procurement success, Intersnack achieved seven-figure savings in euros and concluded long-term framework agreements. In addition, allocations within the national and international network were optimized, and overall network performance improved significantly.
Conclusion
The introduction of the manual for measuring procurement success at Intersnack led to significant savings and optimized procurement processes. Long-term framework agreements and improved network performance increased efficiency in procurement. The manual now forms the basis for a sustainable and successful procurement strategy.
Your contact persons
Dr. Bernhard Höveler
Partner & Managing Director
valantic Supply Chain & Procurement Consulting
- Cost optimization
- Organizational development
- Strategic Negotiations
- Procurement transformation
Jan Laakmann
Partner
valantic Supply Chain & Procurement Consulting
- Sustainability strategy & roadmap
- ESG reporting (CSRD)
- Social supply chains (LkSG, EUDR, CBAM)
Dennis Goetjes
Partner
valantic
- Supply Chain Management
- Sales & Operations Planning
- Supply Chain Configuration
- SCM-Organisations