Pernod Ricard, one of the world’s leading wine and spirits companies, engaged eSourcing Solution to optimize its procurement process. The goal was to reduce administrative overheads, enhance supplier management, and ensure consistent cost savings through outsourced procurement services.
Define the Challenge
Pernod Ricard’s procurement team was struggling with:
- Multiple local suppliers lacking standardization
- High operational costs in repetitive sourcing activities
- Limited visibility into supplier performance metrics
They needed an external partner to streamline procurement, enforce compliance, and provide ongoing cost optimization.
Strategy & Approach
Process Mapping & Requirement Gathering
eSourcing Solution conducted a full diagnostic of Pernod Ricard’s procurement activities, identifying high-volume categories (e.g., glass bottles, packaging, and promotional items) where outsourcing would generate the most impact.
Outsourced Procurement Team Setup
A dedicated offshore team was deployed, working as an extension of Pernod Ricard’s procurement department. This team handled sourcing requests, supplier negotiations, and compliance monitoring.
Supplier Rationalization
By leveraging its global database, eSourcing identified overlaps, eliminated underperforming suppliers, and consolidated vendors into a trusted, competitive network.
Risk Management & Compliance
- Verified supplier certifications (ISO, food-grade compliance)
- Built contractual frameworks with Service Level Agreements (SLAs) to monitor performance
- Implemented real-time dashboards to track savings, lead times, and compliance
Results & Impact
- 20% reduction in procurement operating costs within the first year
- Standardized sourcing process across global offices
- Supplier pool reduced by 30%, improving efficiency and quality consistency
- Increased agility—procurement requests were fulfilled 25% faster than before
Long-Term Relationship
With eSourcing handling repetitive procurement operations, Pernod Ricard’s internal team was free to focus on strategic supplier partnerships and innovation, leading to a more competitive global sourcing strategy.
Summary
Pernod Ricard’s journey demonstrates how procurement outsourcing can deliver significant cost savings, reduce complexity, and free internal resources for higher-value activities—proving the effectiveness of eSourcing Solution’s tailored outsourcing model.