Client: Mellors Bakery
Mellors has been producing high quality baking products since 1840.
A small but highly productive business with 60 staff specialising and supplying sticky and iced buns to major UK supermarkets and retailers.
The initial data obtained was as follows:
• Current baseline annual value £190,000
• Majority of value against cartons from one supplier
• General consumables being purchased from a number of suppliers
As the client was a food manufacturer all relevant packaging materials had to be certified as being suitable for containing food products. Along with the basic specifications this requirement was incorporated in to our work.
The approach taken was as follows:
• Look to obtain comparative quotations from suitable suppliers
• Base all discussions on consolidating all requirements where possible
• Ensured agreement for any price movement in raw materials
The Results obtained were as follows:
• Number of suppliers reduced by 50%
• New major supplier introduced
• Baseline costs reduced by in excess of 12%
• Actual savings surpassed projection due to increase in demand
Some of the areas you have reviewed include landline communications, packaging, ingredients, transport services, cleaning and clothing. Here you were able to obtain savings I can verify that they range from 10% to in excess of 23%.