WINNER: MOST IMPROVED PROCUREMENT OPERATION - START UP
MAJID AL FUTTAIM VENTURES
PROJECT: REVOLUTIONIZING PROCUREMENT & SUPPLY CHAIN IN MAJID AL FUTTAIM VENTURES
Majid Al Futtaim Ventures covers diverse industries from cinemas, leisure and entertainment, unique theme parks, retail, fashion, food and beverage, consumer finance services, facilities and energy management as well as its joint ventures with Gourmet Gulf and Veolia (ENOVA). The business is seeing rapid growth with a 15% rise in revenue in 2018 and potential exponential growth until 2023.
This rate of expansion prompted the business to create a central procurement and supply chain function in January 2017. Initial targets included identifying spend pools and increasing the visibility of spending in all the group’s business units using analytics tools, as well as identifying and supporting synergies between different business units.
The procurement team has initiated more than 1,400 projects and requests for proposals resulting in more than AED 64 million savings.
An end to end supply chain review for the venture’s fashion and entertainment brands, involved more than 130 manufacturers, and led to a distribution centre move from Singapore to Hong Kong. This reduced overall lead time by more than 22% and decreased shipping costs by more than 30%.