The challenge

A global retailer with a €1bn+ budget across five major markets needed a streamlined approach to optimise costs while balancing local responsiveness with global consistency. Key issues included fragmented cost centres, overlapping expenses across regions, and limited economies of scale with suppliers. The objective was to achieve a minimum 10% efficiency gain per market, equating to €50-100mn in 5-year EBIT benefits.

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Our approach

We led a strategic cost efficiency programme to drive operational and financial optimisation across the retailer’s key markets. Our strategy included:

• Organisational scoping and operating model optimisation: Analysed organisational structure to identify opportunities for automation, reduce spans of control, and address process fragmentation, driving efficiency at both the local and global levels.

• Budget consolidation and efficiency: Conducted detailed data analytics to identify overlapping costs and potential savings. Identified opportunities to leverage economies of scale with global suppliers, optimising spend and negotiating better rates across regions.

• Cost centre harmonisation: Simplified cost centre structure and aligned spend categorisation to improve reporting accuracy. Provided clear guidance on cost categories for automated, standardised reporting across markets.

• Implementation and target setting: Set global guidelines and tailored support for each market to ensure local and global financial targets were met, creating a balance of centralised strategy with local execution.

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The results

This programme equipped the retailer with a cohesive, data-driven approach to cost management, balancing the advantages of both centralisation and local flexibility for long-term profitability.

• Significant cost savings: Achieved a 10% efficiency gain in each country in first 6 months, leading to an anticipated €50-100mn in EBIT benefit over five years.

• Increased operational efficiency with reduced overhead costs: Optimised operating model and enhanced use of automation reduced manual workload and streamlined processes and FTE count across regions.

• Improved budget control and visibility: Streamlined cost centres and spend categorisation enabled clear, consistent financial reporting, enhancing budget oversight.

• Enhanced supplier relationships: Consolidated spend and negotiated supplier rates on a global scale, driving cost efficiency across all markets.