Cost reduction in European FMCG operations

Problem statement

The subsidiary needed a practical way to reduce third party indirect spend across plants and offices without disrupting operations. Visibility of demand, ownership of cost drivers and a single view of spend were inconsistent. Targets set by Group Finance were ambitious, timelines short, and readiness varied by site. The business required expert support to align Procurement and Finance, challenge demand, and deliver measurable savings in a regulated FMCG environment.

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Approach

We established programme rigour and a repeatable cadence: discovery workshops, all hands calls, idea generation, category diagnostics and data-led opportunity sizing. A shared toolkit covered pipelines, governance, benefits tracking and communications. We coached budget owners across EU markets and ten plants, aligned Procurement and Finance on approvals and policies, and prioritised demand management over blunt cuts. Progress was reported through simple dashboards to regional and global stakeholders.

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Results

The programme delivered multi million USD budget reductions with signed off savings owned by budget holders and validated with Finance. Sites gained a clear pipeline, playbooks and capability to sustain improvement. Procurement and Finance now work to a common rhythm with better visibility of indirect spend, faster decisions and cleaner execution. Profitability improved across European operations while service levels and operational stability were maintained.