Orangina
Sector: Foods and beverages.

Implementation of a Savings Program

Background

Under pressure from a highly competitive market, Orangina Schweppes needs to optimize their cost structure in order to maintain margins.

For this reason, a Savings Program for indirect spend needs  to be designed and implemented with the objectives to:

• Define and apply actions to optimize cost control, enhance internal process efficiency and improve purchasing terms with suppliers.

• Integrate “savings levers” to provide the best results and rationalize expenses and investments.

Highlights

Market leader of uncarbonated drinks in Western Europe, second in the soft drinks market (apart from cola) and third in the European market for carbonated soft drinks.  Leader of sports and energy drinks in the UK.  Company of historic brands like Schweppes, Oasis, Trina, Pulco, La Casera, Lucozade and Ribena.

> 3,300 employees

> 5 business units: France, Iberia, Belgium, UK & Ireland and International

Objectives

• Improve internal demand management as well as the conditions of purchase and supply of indirect materials.

• Plan actions to reduce costs, specific by category.

• Achieve sustainable cost savings through negotiation with 3rd parties.

Solution

Definition of a Savings Program (PARC):

• Analysis of the scope of expenses and investments to include in the program.

• Identification of cost reduction levers, either helping improve efficiency, or developing renegotiation of prices /services  with suppliers.

Execution and supervision of PARC:

• Coordination of actions between OS managers and FULLSTEP specialists, as well as proactive reporting and results monitoring.

• Execution of savings initiatives by Fullstep and implementation of the Master Plan according to key improvement levers identified.

Result

Savings by category:

_ 10% Logistics

_ 16% Marketing

_ 7% General services

_ 7% Commercial services

Cerrar

More info

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