Supplier Strategy
Smarter Buying & Cost Reduction in the Manufacturing Sector
The Challenge:
Rising input costs and inconsistent suppliers
The business faced escalating material costs and limited leverage with suppliers.
Orders were often made last-minute, leading to higher prices and delays.
Procurement lacked structure, and there was no visibility into supplier performance or cost-saving opportunities.
The Approach:
Implementing approval, scoring, and negotiation controls
I introduced a supplier strategy grounded in data, process, and accountability.
I began by analysing procurement patterns, categorising suppliers, and identifying spend concentration.
A supplier approval and scorecard system was introduced to measure lead times, delivery accuracy, and pricing competitiveness.
In parallel, I implemented a policy requiring three quotes for all high-value purchases.
This then aligned procurement decisions with stock levels to reduce emergency ordering and worked with operations to better forecast material needs.
Regular supplier reviews were introduced to foster better relationships and build negotiation leverage.
Key steps included:
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Creating supplier scorecards linked to service KPIs and pricing.
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Embedding a three-quote minimum policy for critical purchases.
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Redesigning approval workflows and centralising contract terms.
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Improving stock accuracy, which enabled planned ordering instead of reactive buying.
The Result:
Achieved £90k annual savings with strategic procurement
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Achieved a 3% reduction on a £3 million annual spend, saving approximately £90,000.
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Improved supplier engagement and service quality through performance reviews.
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Strengthened stock control reduced the need for premium-price emergency orders.
