ForFarmers has been working with Procurement Services for years to maintain control over IT procurement projects. Chris Wigglesworth, IT Director at ForFarmers, explains how this collaboration came about and what results have been achieved.
“I started in the UK business in operations, mainly focused on production, transport and customer services,” says Chris. “Later, I picked up other local responsibilities including IT and indirect procurement, including for example gas, electricity, packaging, and vehicles. In 2012, after the acquisition by ForFarmers, I stepped over to the group head office and after a short period setting up a new group-wide Indirect Procurement function I returned into the world of IT as Group IT Director. I am now responsible for the entire IT department, IT policy, and IT strategy over the four countries where we operate. This covers about €18 million of IT spend in a wide range of OPEX and investments, from data centers to software solutions and third-party services.”
The start with Procurement Services
“When we started with Procurement Services, it was initiated by our then procurement director. Together, we saw that IT procurement could be more efficient and strategic. Since then, Procurement Services has worked closely with us to manage the IT spend of about 18 million euros effectively. What immediately appealed to me is their knowledge and experience. It is valuable to have an external team that not only manages contracts but also critically assesses the demand while maintaining supplier relationships where possible.”
Improved cash flow
“One of the key points is managing our IT contracts. Think about hardware, software, and third-party services. Our projects are complex and require custom software, so it’s crucial to map out the right terms and risks. Procurement Services helps immensely with that. They also assisted in optimizing our payment terms. In the past, we sometimes paid suppliers within 12 days; now we work with significantly longer terms. This has greatly improved our cash flow position.”
“What immediately appealed to me is their knowledge and experience. It is valuable to have an external team that not only manages contracts but also critically reviews proposals while maintaining relationships with suppliers.”
Concrete results
“We’ve made great strides together. For example, less than 60% of our IT spend was contractually fixed when we started. Now, 95% of our IT spend is under contract, giving us tremendous control and oversight. Annually, we successfully complete 20 to 30 procurement projects together. This ranges from renegotiating expiring contracts to new investments in data centers or complex cloud solutions. If you look at our Gartner IT procurement & sourcing score, we’re now at a 4. That’s a high level—5 is for the absolute top, like Toyota, which is especially focused on the supply chain. Our average payment term has more than doubled. Furthermore, the successful collaboration pays off year after year with a procurement result of more than 400,000 euros!”
Working together on the future
“It feels like Jeroen and Martijn from Procurement Services are part of my own team. The open communication and sharing of successes make the collaboration very pleasant. At the same time, they can ‘play hardball’ with suppliers without damaging the relationship. That balance is important. IT procurement is becoming increasingly complex, especially with rapid changes in technology and security. With their knowledge and flexibility, we continue to anticipate what is coming our way.”
Results at a glance:
- Spend under contract increased from <60% to 95%.
- Payment term doubled.
- Average procurement savings of >400,000 euros per year.
- 20-30 projects successfully completed annually.
