Vion professionalises non-food purchasing to deliver cost efficiencies

Date: 11-07-2014 Tags:

First steps in a new strategy

11 July 2014 – Vion has decided to contract proQure to support Vion in the process of reducing the cost of non-food purchases. The purchase specialists at ProQure will support Vion in negotiating and purchasing in a more efficient and structured manner.

Jacques Straathof, CFO Vion: ‘To regain trust from our clients and the markets, we plan to invest an additional 100 to 150 million euros. We can finance part of these investments through more efficient non-food purchasing’.

Vion Food spends on average 11% of sales on purchasing non-food items to support its business operations. This includes purchasing energy, logistics, hiring of external staff, packaging materials, catering and cleaning. Vion has identified substantial opportunities to save costs for purchases of non-food products and services. To achieve these savings, Vion is going to re-structure its non-food purchases operations.  The Dutch and German teams will merge, allowing the business to take advantage of the economies of scale of our organisation.

A good example of the benefits of a unified approach is sea freight to Asia; by purchasing as one Vion, we have achieved an annual cost saving of 2.5 million euros.