CBH Group is Australia’s largest co-operative and is owned and controlled by more than 4,000 Western Australian grain-growing businesses. To reduce grower fees it embarked on a three-year procurement transformation, Spend Smart. CBH wanted to implement sustainable, long-term cost savings, treat growers’ money as it would its own and increase procurement maturity through fit-for-purpose process, system and tools. Key to this was a new way of working, with cross-functional ideation sessions, a ‘voice-of-customer’ programme, weekly transformation stand-ups and workstream meetings.
A structured approach and common language, Spend Smart was created with simple principles to align everyone to its goals. The result is a 12% total spend saving ($30m) in two years, the procurement net promoter score jumping from 32% to 71% post transformation, a major shift in the thinking of the business to an ‘owners’ mindset’ and an independent assessment showing procurement rising from ‘moderate’ to ‘best in class’ post transformation as a result of capability uplift.