This family-owned vegetable grower, producer and shipper is the world’s largest in its category. Despite being a multibillion-dollar concern, the company has remained committed to its founding philosophy of providing good value while conducting business with integrity.
Leadership wanted to improve measurable performance and infuse procurement best practice to mitigate against future cost increases. Consequently, and for the first time in the company’s 50-year history, they decided to bring in a consulting firm.
SGS Maine Pointe was asked to focus on implementing and sustaining significant improvements in the packaging and maintenance repair and overhaul (MRO) categories, positioning our client to improve its overall competitive business performance and mature internal strategic procurement within the plant operations group.
Implementation
When SGS-Maine Pointe began our analysis, the client had no idea what to expect. Executives were anxious about alarming the workforce, especially as they had recently consolidated the business. They asked SGS-Maine Pointe to make every possible effort to mesh with their team, adjusting to the company’s culture, to allay these fears.
Our TVO analysis revealed an organization with many good procurement practices which wanted to achieve an even higher level of performance in a short period of time. Procurement was mostly tactical and lacked high maturity strategic sourcing and negotiation skill sets.
SGS Maine Pointe triangulated competitive, market and industry information to identify potential risks and opportunities which the client had not previously been aware of. We produced a spend cube and should cost models to clearly demonstrate the opportunities. These insights, combined with the hands-on experience and expertise of our SMEs and the flexibility of our approach, helped build trust between SGS-Maine Pointe and the client. This made them confident we could help drive value for their business and work comfortably with their team as we moved forward.
Working closely with the client’s team, SGS Maine Pointe:
As procurement transformed from tactical to strategic, its maturity increased from level 2 to 3.5 on the 5-level TVO Maturity Pyramid™.
The Procurement Management Operating System (PMOS) we implemented provides management with a set of tools, procedures, policies, practices, roles, responsibilities, communications, activities and metrics which enable the organization to achieve aggressive short-term goals and objectives while sustaining and improving on performance over time.