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<\/span><\/div><\/div><\/div>Background: Pernod <\/b>Ricard, a major player with a strong decentralized culture<\/h2><\/div>Pernod Ricard, the world\u2019s second-largest wine and spirits company, has always been distinguished by a deeply decentralized culture, in which <\/b>each brand and subsidiary retains a high degree of autonomy. While this organizational structure fosters agility and responsiveness, it also presents a major challenge: how can the group fully leverage its scale to negotiate more favorable purchasing terms while preserving the autonomy of local entities? <\/p>\n
“A comparison with its main competitor, Diageo\u2014the industry leader and a highly centralized company\u2014revealed a significant performance gap. Thanks to its centralized structure, Diageo is able to optimize its procurement and maximize economies of scale. Pernod Ricard, on the other hand, had to strike a balance between local agility and the group\u2019s collective strength.”<\/i><\/p>\n
It was in this context that Sarah Kerlan, who was hired as Chief Procurement Officer (CPO), was tasked with lead an ambitious transformation of the procurement function. Over the course of four years, she redesigned the procurement function to turn it into a strategic lever\u2014both cost-effective and sustainable\u2014 <\/b> with support from the Cubik teams (By.O Group).<\/p>\n<\/div><\/div><\/div><\/div><\/div>Client need: to improve <\/b>overall performance while preserving the group’s culture<\/h2><\/div>Pernod Ricard had several key objectives:<\/b><\/p>\n\n- Optimize negotiations with suppliers by speaking with one voice, without sacrificing the autonomy of local brands.<\/li>\n
- Clarify the division of responsibilities between headquarters and subsidiaries to avoid overlap and maximize efficiency.<\/li>\n
- Reduce the carbon footprint, particularly for glass, which is the group\u2019s largest source of CO\u2082 emissions under Scope 3.<\/li>\n
- Extend best practices to indirect procurement (marketing, consulting, digital services, facility management, etc.), which is often overlooked but offers significant savings potential.<\/li>\n
- Build long-term capacity by training teams in these new methods to ensure that the transformation continues beyond the initial project.<\/li>\n<\/ul>\n<\/div><\/div><\/div>
Pernod Ricard, the world\u2019s second-largest wine and spirits company, has always been distinguished by a deeply decentralized culture, in which <\/b>each brand and subsidiary retains a high degree of autonomy. While this organizational structure fosters agility and responsiveness, it also presents a major challenge: how can the group fully leverage its scale to negotiate more favorable purchasing terms while preserving the autonomy of local entities? <\/p>\n
“A comparison with its main competitor, Diageo\u2014the industry leader and a highly centralized company\u2014revealed a significant performance gap. Thanks to its centralized structure, Diageo is able to optimize its procurement and maximize economies of scale. Pernod Ricard, on the other hand, had to strike a balance between local agility and the group\u2019s collective strength.”<\/i><\/p>\n
It was in this context that Sarah Kerlan, who was hired as Chief Procurement Officer (CPO), was tasked with lead an ambitious transformation of the procurement function. Over the course of four years, she redesigned the procurement function to turn it into a strategic lever\u2014both cost-effective and sustainable\u2014 <\/b> with support from the Cubik teams (By.O Group).<\/p>\n<\/div><\/div><\/div><\/div><\/div> Pernod Ricard had several key objectives:<\/b><\/p>\nClient need: to improve <\/b>overall performance while preserving the group’s culture<\/h2><\/div>
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