Transforming Procurement Into a Global Powerhouse

Since its founding in 1899, McCormick & Co. has become a household name in flavor, spices and seasonings with more than 10,000 employees, facilities in 26 nations and products sold in over 140 countries.

McCormick recently completed a 10-year initiative that built a globally coordinated and aligned supply chain—an initiative driven in part by APICS training and the Supply Chain Operations Reference (SCOR) model.

Until 2013, McCormick’s procurement function was regionally focused, operating as an organization separate from other parts of the supply chain.

Less than three years later, the procurement process has transformed into a streamlined, fully global function, achieving substantial cost savings that contribute to the company’s bottom line.

The SCOR framework serves as a foundation for success by providing a shared vision between procurement and supply chain.

SCOR enables a universal language and the alignment of people, process, organization and technology, and provides a global scorecard, creating a seamless approach to working across functions and facilities.

GOALS

• Transform procurement from a regional to a fully global process
• Position procurement as a strategic component of supply chain
• Create efficiencies through new processes and by deriving greater value from existing processes

APPROACH

• Develop a vision and strategy in alignment with business leaders and execute against a roadmap for execution that captures immediate value and builds momentum
• Make strategic investments in people, processes, organization and technology
• Promote the “Power of People” through team building and training
• Support supply chain’s alignment to the SCOR framework

RESULTS

• Incorporated a total supply chain perspective in procurement’s operations
• Delivered bottom-line value through sustainability and innovation
• Doubled procurement cost savings in three years
• Generated tens of millions of dollars in free cash flow
• Drove the corporate agenda and served as a catalyst for the entire enterprise