Case Study

Strategic Sourcing Transformation for an International Logistics Organisation

Strategic Sourcing Transformation for an International Logistics Organisation

Sunfish transformed the procurement capability of an international rail and road logistics organisation by implementing a strategic sourcing model that delivered measurable cost savings, improved supplier performance, and strengthened risk management across the supply chain.

Overview

Sunfish was engaged by an international Rail and Road Logistics organisation that recognised its in-house procurement function was largely administrative and transactional in nature. While the team managed both Goods and Services for Resale and indirect procurement categories, the absence of a strategic sourcing approach limited operational efficiency and value generation.

Cost savings, supplier performance improvements, and structured risk management were not being systematically driven from the supply base.

Sunfish was appointed to design and implement a strategic sourcing model that would align procurement with business strategy, optimise cost and performance, and proactively manage supply chain risk.

The Challenge

The existing procurement function lacked a structured strategic sourcing capability. Activity was focused on transactional processes rather than value creation.

As a result:

  • Opportunities for cost optimisation were not fully realised
  • Supplier performance management was inconsistent
  • Supply-related business risks lacked structured oversight
  • Procurement was not embedded as a strategic business partner
  • Back-office finance processes were not fully aligned with sourcing activity

The organisation required a transformation that would shift procurement from reactive administration to proactive value creation while strengthening governance and commercial discipline.

The Approach

Under the sponsorship of the CFO, Sunfish engaged leadership across business functions to capture business needs, assess supplier performance, and evaluate procurement workload and capability gaps.

A comprehensive skills assessment of the existing team was conducted and incorporated into a phased reorganisation and recruitment plan. The procurement function was restructured around a ‘Business Partner’ model, introducing clear roles and responsibilities aligned to strategic objectives.

Sunfish implemented a structured strategic sourcing framework to:

  • Assess and prioritise sourcing categories
  • Optimise supplier performance and cost structures
  • Introduce structured issue and risk management
  • Improve governance and transparency across procurement processes

The new model embedded procurement within business planning cycles, ensuring sourcing decisions were aligned with operational and financial strategy.

The Outcome

The transformation delivered a coherent and measurable strategic sourcing plan that improved cost performance and strengthened supplier management across the organisation.

The procurement function evolved into a strategic partner to the business, with clearer accountability, improved commercial control, and enhanced collaboration with finance and operational teams.

Secondary benefits included improved clarity and control over supplier-related risks and enhanced efficiency within back-office finance processes.

Impact

  • Cost savings
    A structured strategic sourcing plan delivered 20 percent improvements in business-wide cost performance.
  • Improved supplier performance
    Enhanced supplier evaluation and issue management strengthened operational reliability.
  • Stronger risk management
    Greater clarity and control over supplier-related risks improved governance and resilience.
  • Operational efficiency
    Alignment between procurement and finance processes improved internal efficiency and transparency.
  • Strategic capability uplift
    The procurement team transitioned from transactional processing to a value-driven Business Partner model.

Client Testimonial

“The results were both measurable and significant. The introduction of a strategic sourcing plan delivered a 20% improvement in cost savings across the business, alongside greatly improved supplier performance, structured sourcing activity and more rigorous issue and risk management”

Written by Gilbert Mackay

A senior Procurement leader and consultant, specialised in Indirect procurement. 20+ years experience in creating and delivering hands-on strategic procurement with high levels of stakeholder engagement; leading, building & being part of great teams to deliver exceptional value for global organisations.​

Written by Gilbert Mackay

A senior Procurement leader and consultant, specialised in Indirect procurement. 20+ years experience in creating and delivering hands-on strategic procurement with high levels of stakeholder engagement; leading, building & being part of great teams to deliver exceptional value for global organisations.​

At a glance

Client:
International Rail and Road Logistics organisation

Engagement:
Design and implementation of a strategic sourcing transformation programme

Services:
Procurement capability assessment
Strategic sourcing framework design
Supplier performance management
Organisational restructuring and skills assessment
Governance and risk management enhancement

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