Optimising procurement: enhancing financial resilience at Princes Foods

Dan Wood, Consultant of our Consumer and Retail Practice, discusses his recent appointment for Princes Foods

The background

Princes Foods is a leading player in the food and beverage industry, specialising in the production and distribution of canned goods including fish, fruits, and vegetables. The company sought to enhance its financial resilience and optimise cost structures, so to address these challenges, the company looked to engage the services of an Interim Procurement Consultant.

The candidate

In response, Consultant Daniel Wood in the Consumer and Retail Practice provided a four-person shortlist of highly qualified candidates within 72 hours. Paul McGrath, an accomplished procurement professional with a robust background in FMCG and pharma industries, was appointed as the appropriate consultant for Princes Foods. Paul's extensive experience and proven track record in managing both direct and indirect spend portfolios within the FMCG and pharma sectors made him the ideal candidate for the role. His expert handling of procurement challenges, coupled with his strategic mindset, positioned him as a key asset during this critical phase for the business.

The solution

Once on board, Paul’s mandate included driving cost and cash flow improvement initiatives across diverse geographies, strategic planning and fostering effective supplier relationship management (SRM). He spearheaded a series of impactful initiatives which included:

Extension of payment terms | Paul led the extension of payment terms across all procurement categories, resulting in a significant cash flow improvement of over £30 million.

Vendor rating system | Recognising the importance of strong SRM, Paul initiated the development of a Vendor Rating system to promote effective relationships across all procurement categories.

Cost reduction strategies | Working in tandem with external consultants, Paul played a pivotal role in delivering £10 million of retained savings for Princes Foods.

Structures for tracking procurement costs | Paul developed comprehensive structures to systematically track and review procurement cost reduction efforts, ensuring transparency and accountability.

Consultative oversight | Paul provided consultative oversight to the development of the procurement team, leveraging his wealth of experience to guide and mentor team members.

The outcome

Paul's rapid and effective actions resulted in tangible financial benefits for Princes Foods. The extension of payment terms, development of the vendor rating system, and collaboration on cost reduction strategies significantly improved the company's cash flow and overall financial resilience. Engaged on an outside IR35 day rate contract, Paul's leadership and expertise played a crucial role in steering Princes Foods through a period of change, ensuring a focus on financial optimisation and efficiency. The groundwork laid by Paul McGrath not only delivered immediate financial improvements, but also established a robust foundation for the company's future procurement strategies. With Paul's consultative oversight, the procurement team is better equipped to contribute strategically to the company's objectives, ensuring sustained success in a dynamic industry.