Formica Group Europe
In 2016, the future of Formica Group was in doubt. Sales were falling, costs spiralling out of control and it posted a huge loss. A new European procurement director was engaged to transform procurement from an underperforming, disengaged, tactical function to a value-focused strategic team, positively driving change. To achieve this, it needed to gain credibility and secure top- down endorsement of its strategy. Culture and engagement had to improve and external best practice brought in. It built a strategy focusing on what could be delivered in a 12-month horizon. To bring this to life it had to believe and live four behaviours: relationship (build the foundation on which it could challenge and change); win-win (educate stakeholders to collaborate to seek shared value); challenge (overcoming decades of “always doing it this way”); and innovation. The results speak for themselves: cost savings exceeded with impact of NZD 3.7 million across 121 initiatives. The team is energised and the perception of procurement has improved. It says it is incredibly proud of its achievements, and against such strong competition it should be!
Judges’ comments: "With the business making a loss, there was the opportunity to establish great procurement at the heart of the turnaround. New leadership, clear strategy and plan, re-engagement with a sceptical business...result."