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October 03, 2017

Wall Street Journal, “Finance Chiefs Centralize to Cut Costs, Make Smarter Decisions,”

The parent company of Jameson, Chivas Regal and Glenlivet used to have each brand purchase their own casks for aging, storing and shipping. That turned out to be an expensive exercise for the drinks company. To better negotiate prices for casks, Pernod Ricard SA in 2015 decided to combine its purchases from a central base in Kentucky, even though the whiskeys are made in Canada, Scotland and Ireland. The move is just one example of how centralizing costs helped the company shave off 2% to 3% of expenses tied to indirect procurement… With insights from The Hackett Group’s Penny Weller.