Case Study: Transforming Outsourced Services for a Global FMCG: Better Controls, Lower Risk, Greater Efficiency

To achieve the client’s objectives, we provided senior procurement and commercial transformation advisory services, supplementing the in-house team with experienced professionals familiar with large-scale transformation programmes.

We began by taking a structured approach to understand the current state, identify gaps and opportunities, and agree a clear roadmap with stakeholders. This led naturally into two main phases of activity: Discovery, to capture the full picture of services, contracts and risks, and Implementation, to put in place the governance, controls and processes required to manage the outsourced services effectively.

Discovery Phase:

• Identified key stakeholders responsible for service delivery and management.
• Collected data on existing services, delivery scope and costs.
• Assessed current controls to identify gaps and opportunities for improvement.
• Prioritised the change agenda to map the transformation and managed service roadmap for the coming year.

Implementation Phase:

• Created a centralised record of all historical and active contracts.
• Conducted outsourcing risk assessments and planned mitigation activities.
• Recommended contract consolidation opportunities.
• Established governance in line with the Master Service Agreement (MSA).
• Improved monthly and quarterly reporting.
• Developed continuous improvement plans for managed services.
• Introduced a repeatable approach for capturing contract requirements.
• Began drafting fit-for-purpose contracts that protected the client’s interests.

The engagement delivered measurable benefits across controls, risk management, operational relationships, and efficiency. By taking a structured, proactive approach, the client gained clear visibility of their outsourced services and unlocked opportunities for cost reduction and improved operations. Key outcomes included:

• Improved Controls: The discovery revealed nearly 50 contracts that had previously been unmanaged. Consolidating and tracking these contracts allowed accurate calculation of Service Credits, Earned Value, and identified further cost-saving opportunities.
• Reduced Risk: Clearly defined SoWs and CRs, aligned with MSA obligations, strengthened the client’s protection and reduced operational risk across all managed services.
• Stronger Relationships: Enhanced monthly and quarterly reporting, combined with a continuous improvement focus, improved collaboration between Service Owners and Service Delivery Leads. Over half of Service Owners now describe their services as ‘good’ or ‘very good’.
• Increased Efficiency: Consolidation of 18 short-term resource contracts reduced administrative effort and overall costs, streamlining procurement, invoicing, and payment processes.