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Analysis and Insights

Case Study

A leading FMCG organisation was looking to leverage their spend and consolidate their Asia Pacific supply base for their packaging requirements. Each of the 8 business units had specific requirements, under the same packaging category with opportunities for suppliers across business units. Some of their suppliers also supplied to multiple business units in the region.


  • The client had previously executed E-sourcing initiatives with some success and were keento explore the opportunity of consolidating suppliers across the region andidentifying potential synergies.
  • We completed a requirements analysis across all the business units in line witheach business unit’s category strategy to ascertain the parcels of requirementthat would be most suited to be addressed via the e-sourcing (reverse auction) platform
  • We conducted a market research via RFIs to ensure that suppliers that would be participating on the auction had the required capability and capacity tosupport the requirements for respective business units
  • Based on the responses from the RFI, we built a bidding strategy and issued the RFPfor suppliers to price the detailed business requirements through the sourcingplatform
  • Once the suppliers had bid, we completed a due diligence exercise to ensure that thebid was legit and made sense and that there were no errors in the conversions given suppliers were normalized to one standard currency.
  • The e-sourcing event(auction) was conducted with25 suppliers across Asia Pacific bidding on various requirements. Theseincluded both incumbents and new suppliers


Through the e-sourcing program

  • There was a consolidation of suppliers across the Asia Pacific region, throughmovement of parcels of business within the incumbent supply base driving 9% insavings in a category that was typically delivering 2-3% in sourcing savings
  • Some business units that had never executede-sourcing events saw savings up to 30% on some of their requirements.

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