Compass Group PLC:
UK & Ireland Supply Chain Review
Compass Group PLC is a British multinational contract foodservice, cleaning, property management and support services company. The central commercial function provides commercial and procurement support to all sectors of the group. Recent acquisitions and contract wins in the support services business had an impact on the operational supply chain and Compass recognised that there was a need to review the integrity of the 5700 suppliers in this space.
Gary Dear, Commercial Director, approached CMI to help them understand the nature and risk of the group’s annual operational spend across the UK and Ireland. CMI were engaged to conduct a detailed as-is analysis of the operational (non-food) spend worth £280M annually.
CMI worked across the business to obtain relevant data on non-operational spend. By combining a range of available data sets, CMI were able to conduct a comprehensive analysis and visually show a wide range of metrics. The initial analysis and findings were presented to the Group’s commercial directors.
This led to a number of new lines of enquiry and additional deep dive analysis was requested in a range of key areas. Through additional analysis, we were able to demonstrate that 80% of the annual spend was with 2% of the total supply chain resulting in a huge management effort to adequately manage a large tail of low spend suppliers.
Alongside this analysis, CMI also conducted a review of the supplier management processes and obtained insight and feedback from customers and client teams.
CMI presented a detailed visual analysis identifying the spend profile against a number of key areas including risk, spend and category, and proposed a package of recommendations to improve the key issues identified.
CMI were retained to implement a project involving all sectors of the business to reduce the number of suppliers and improve the due diligence processes and compliance for the operational supply chain.