Procurement optimisation for a leisure group
For a multi-brand leisure company, led a procurement diagnostic that delivered over 7% savings across the business.
Working with a proven procurement diagnostic framework, through analyses and workshopping with procurement staff we honed in on the priority areas of opportunity, and ultimately identified £55m of annual savings off a £750m addressable spend. We went on to programme manage the implementation, support specific workstreams and negotiations, and train teams to ensure skills transfer.
Context
The Group CFO of a high performing multi-site, multi-brand leisure group was facing macroeconomic uncertainty and wanted to have more firepower to invest where the business needed it most.
He engaged us to lead a detailed procurement diagnostic across a £750m addressable spend base, spanning consumables, services, construction & real estate, repairs & maintenance, cleaning, and food & drink.
We recommended an approach that would embed best practice and ensure sustainable savings, rather than a one-off exercise.
Approach
Our consultants, with deep backgrounds in hospitality and procurement, led the client’s teams through a series of diagnostic analyses and workshops, identifying and confirming the highest value areas of opportunity.
Together we identified and detailed opportunities to reduce spend by £55m annually.
We went on to support implementation, delivering overall programme management, targeted support on specific workstreams to renegotiate contracts, and training on better procurement practices.
Impact
The savings of £55m were captured in year one – and beyond. Our team’s work to train and develop teams and embed better procurement practice ensured real skills transfer, and sustainable, ongoing savings.