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Procurement

Procurement

Supplier base

48% reduction


Own label sales

42% increase

SIG has changed its approach to procurement by increasing co-ordination across the Group, professionalising the FUNCTION and investing in training and resources.

Historical position

Procurement was decentralised and conducted at multiple levels across the Group.

This meant that SIG was not fully leveraging its size in the marketplace and had a long tail of suppliers.

Progress

SIG has transformed its procurement function by increasing co-ordination across the Group and investing in people, training and resources.

Category management is now fully embedded in the Group and is business as usual. Purchasing is now the responsibility of procurement professionals and is conducted through six international category forums covering roofing, ceilings, technical insulation, structural insulation, air handling and dry lining.

This has enabled SIG to consolidate volumes and better leverage its size.

Benefits

SIG has delivered a net cumulative saving of £22.7m from its Strategic Initiatives over the last two years, mainly sourced from procurement.

The Group has also reduced its supplier numbers by 48% since 2013, meaning that the Group has exceeded its target of a 33% reduction by the end of 2015.

SIG is also making good progress towards its target of growing sales of its own label products by 50% by the end of 2016, having increased its own-label sales by 42% since 2013.

TARGETED SAVINGS

The Group is seeking an additional £10m net savings in 2016, with further efficiencies thereafter.

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