Procurement contribution to improved EBIT through optimization NPD process

What clients say

Start

Shortly after starting my new interim role I was asked to do a final negotiation with a 3rd party supplier. A project team had worked on developing a new range of ‘products’ for almost a year with a new supplier. Notwithstanding the negotiations that had taken place during the development phase, there was still no consensus on the final cost price. 
I couldn’t change the status quo, as a consequence the sourcing process had to be done all over again. 

Approach

Taking the lead from my procurement role I organised a brown paper session on the NPD (New Product Development) process with the same team. All process steps were identified, the go/no go moments clearly stated and the development costs, where possible, pushed forward.  

With the newly developed sourcing process, 3 pre-selected suppliers were visited, by Marketing and Procurement together and reviewed based on pre-qualification criteria, with a clear ‘target price’ in mind. Based on the best performance, including test runs and quality panels, the final supplier was selected and the development process followed accordingly.   

Result

The final result was a range of products that met all quality requirements and staying below both ‘target price’ and development budget. More importantly, the whole process had taken less than 6 months, a reduction of over 50 %.  

The NPD process template has been used for other development projects thereafter and resulted in a reduction in ‘time-to-market’ of 4-6 months, resulting in earlier retail sales with the same number of months.  

Procurement proved it can add value to a business and contribute to an improved EBIT.

“In the 1,5 years he has worked for me, I have seen Wilco fulfilling different roles. Both in the role of Interim Manager as well as of Project Manager, he knows how to quickly empathize with new matter and implement in organisations and procedures.

His result driven, persuasion and negotiation skills are his most important assets. He has saved remarkable sums, not all of which were immediately obvious.

He can also manage well in the role of strategic adviser; his pragmatic approach ensures that his advices are easy to use.

I have got to know Wilco as a very pleasant, concerned and independent operating colleague, thinking in solutions, rather than problems”
Manager Corporate ProcurementFood industry

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About Proccon

Proccon stands for Procurement Consultancy, utilizing over 25 years of (international) experience in procurement consulting and management to deliver solutions, designed for your individual business. Effective procurement has a significant impact on many aspects of your business.
I am happy to discuss where and how my expertise can contribute to your procurement needs.

“Wilco has the capacity to quickly adapt new ways of working and procedures. He is a very professional and driven manager, analyses well, draws the right conclusions and, at the end, he then achieves the maximum result” -
Managing Director FoodFood industry
“Wilco is a very friendly but determined professional with excellent procurement skills. Not the old-fashioned buyer, but a cross-linkage modern trader, knowing when to choose his battle. Searching for mutual benefits, rather than to focus on his own suboptimal objective”
EntrepreneurBusiness services
“Working with Wilco was of great value for us. Disciplined, calm and creative was his advice in the procurement of hiring personnel, his vision and ideas on the matter were well considered. A fine person, humorous and serious, intelligent and sometimes, when needed, very persistent”
Procurement ManagerFinancial services
“Wilco is a hard-working manager, very organized and result driven - but at the same time warm-hearted and easy to interact with
Vice President SalesHealthcare industry
“Wilco is a great sourcing professional with incredible expertise, strategic focus, a constant drive for improvement and incredible commitment. After his 18 months with us, I can really recommend working with him, not only from a professional perspective, but also from a personal perspective”
Procurement ExecutiveDairy industry

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