Pernod Ricard

Pernod Ricard

Background

Pernod Ricard is the second largest alcoholic beverage company in the world experiencing significant year-on-year sales growth in China resulting in ever increasing marketing and promotional budgets. Client was concerned that the spend with external marketing suppliers was not optimized and that world class sourcing practices were not being applied

Approach

  • Created multi-functional team with representatives from Marketing and DS buyers
  • Selected pilot categories to test opportunity associated with deploying world class sourcing processes (glass and metal products)
  • Drove strategic sourcing process on selected pilot categories
  • Developed list of qualified suppliers for both technology segments through and RFI process
  • Run RFQ process with short listed suppliers to select preferred partners
  • Negotiated final frame agreements
  • Reviewed current procurement processes, organization and systems

Results

Fundamentally changed sourcing strategy:
– from brand segmentation to technology segmentation
– from « spot » buying to frame contracts
– from « creative agency » to « direct »

Negotiated between 30 to 40% cost reduction on pilot categories

Changed sourcing processes and organization

Client decided to outsource the procurement of all its BTL categories to Dragon Sourcing

Kesslers International

Kesslers International

Background

Kesslers International is Europe’s leading specialist designer & manufacturer of Point of Purchase displays and merchandising. To be able to competitively respond to major tenders in the future, Kesslers decideds to contract Dragon Sourcing to qualify suppliers with metal working, wood working & plastic extrusion/moulding capabilities as well as complete display suppliers in selected regions of China and Vietnam.

Approach

  • Dragon Sourcing initiated the project by collecting the capabilities required by the suppliers together with the technical requirements for sample projects requiring the different process capabilities.
  • Through an extensive supply market analysis over 600 potential suppliers were identified in China & Vietnam.
  • A rigorous RFI/RFQ process was administered to understand the supplier’s capabilities and competitiveness, resulting in 45 full responses.
  • The responses to the RFI/RFQ were analysed using a balanced score card to rank suppliers and recommend those for audit visits
  • Dragon Sourcing organised and accompanied Kesslers in the auditing of over 14 suppliers in China & Vietnam.

Results

Dragon Sourcing successfully qualified Chinese and Vietnamese suppliers with the capability to support Kesslers in the future.

Kesslers ability to successfully respond to future tenders is now increased through access to quotes from a wider supply base.