Procurement & Tender Management
Project Info:
This project was executed for the Georgian FMCG production branch of a leading international holding company. The initiative aimed to enhance procurement efficiency, optimize supplier management, and improve budget allocation for over 10,000 SKUs, covering production materials, POS assets, and marketing materials.
Challenge:
The absence of a structured tendering framework led to fragmented procurement, with multiple departments independently managing sourcing.
Lack of pricing transparency and procurement governance resulted in cost inefficiencies.
Inconsistent supplier performance and delayed deliveries disrupted production, sales and marketing operations.
Inefficient inventory management contributed to excessive stock levels, budget overruns, and waste.
Uncontrolled procurement spending increased operational costs without strategic oversight.
Solution:
Implemented Supplier Relationship Management and centralized tender management system to standardize procurement operations.
Developed and enforced Standard Operating Procedures (SOPs) for structured tendering, ensuring compliance and efficiency.
Established a cross-functional tender committee, incorporating representatives from relevant departments to evaluate quality, usability, and supplier compliance.
Optimized supplier selection and contract management through structured bidding processes, securing cost-effective and reliable sources.
Reduced procurement cycle times, enhancing decision-making speed and lead time efficiency.
Introduced strategic supplier segmentation, maintaining a balance of primary and secondary suppliers to mitigate risks and optimize pricing.
Enhanced budget planning and expenditure control, aligning procurement strategies with corporate financial objectives.
Result:
- Achieved a 6.4% reduction in procurement budget
- Optimized supplier negotiations and tendering processes, yielding an additional 1.65% cost reduction $907,500 USD
- Significantly improved procurement transparency, supplier compliance, and operational efficiency.
- Reduced procurement lead times, minimizing delays and ensuring consistent inventory availability.
By implementing a systematic and data-driven procurement approach, the company strengthened its supplier relationships, improved financial controls, and enhanced overall supply chain agility.