Bernard Matthews saves 21 per cent through e-sourcing

Gurjit Degun
20 November 2013

Turkey farmer Bernard Matthews has created business savings of 21 per cent by using e-sourcing across a range of its spend categories.

The move is part of the company’s category management plan set up two years ago. It began using the platform in January last year.

Richard Southgate, procurement director at Bernard Matthews, told SM that e-sourcing is part of the category management ‘professional toolbox’.

He said that the firm is using Wax Digital’s web3 eSourcing for maintenance, repair and operations, janitorial and safety categories as there is plenty of competition among suppliers.

Southgate added that the team will evaluate whether to use e-sourcing for other categories next year.

He said: “Potential cost savings aren’t our only goal. Using this platform allows us to identify clear specifications and the standards we require from our suppliers at the outset. We were also keen to establish a true market value for the products or services we source, evaluate like-for-like comparisons and determine clear service-level agreements from the marketplace. 

“We have now run a number of successful e-auction events which have all resulted in significant financial savings and enabled us to award contracts to both new and incumbent suppliers.”

Cereal brand Weetabix has also taken on Wax Digital’s e-sourcing platform as part of its wider strategy to overhaul procurement. The company’s head of procurement Antony Bowdidge told SM that it will help other areas of the business where engineers are buying products under £100,000 such as ovens or packaging equipment.

Bowdidge said: “We wanted to use e-sourcing beyond the procurement team. In reality we have 250 people across the business who are buying things on behalf of Weetabix and we therefore want to use a tool like this to control some of that expenditure.”

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