The Hut Group

This case study looks at our engagement with The Hut Group, where Oculus helped their procurement team deliver a range of projects and maintain pace against their objectives, while the team was built.

The Challenge

THG is a global beauty and wellbeing retailer and is home to some of the world’s best brands, including ‘Myprotein’, ‘Lookfantastic’ and more. Operating over 140 high-profit websites that sell premium, non-perishable FMCG direct to consumer to the fast-growing, global Health & Beauty markets via their in-house technology and operating platform.

THG’s moniker of (being) “a true Northern Powerhouse” is well deserved and this major British success story continues to grow from strength to strength by way of acquisition and organic growth.

Oculus began its engagement in June 18; huge workload pressures, acquisitions and an ongoing recruitment plan to bolster in-house talent had meant the THG Procurement team needed a partner whom could act as an extension of their team and deliver some large-scale projects that faced a number of operational challenges.

The Scope

  • Cleaning
  • Print
  • Operational Consumables

Our Strategy

Our saw was to gain an intimate understanding of the supply chains for both companies. As with our standard methodology, Oculus led a series of category workshops, engaging with budget holders and suppliers to establish the current landscape of the areas, but most importantly, to understand how further value can be derived to support a better customer proposition or operational service delivery. The categories in scope were three-fold;

  • Office and industrial cleaning – a large area of spend across circa 14 of the THG property estate; as a food manufacturing environment (in-part), it was key for this area to have the right suppliers in place.
  • Print – the delivery of customer and product communications and brand collateral.
  • Operational and office consumables – an important area of spend, ensuring that ‘the day job’ can always be delivered, without delay!

The depth of category knowledge of our practitioners allowed us to indicate real-world and practical opportunities to increase the value from the various supplier arrangements in place.

As a consequence of the rapid growth of the business, many areas of spend had been largely decentralised (from a cost management perspective), and as such this was the first opportunity for the THG Procurement team by way of Oculus Procurement to make an impact in these areas.

Our Solution

Oculus led a thorough and comprehensive review of these categories.

Our objective was to ensure that THG appointed the most capable suppliers, who were able to positively influence and work collaboratively with THG, rather than simply providing the best cost.

The Oculus sourcing methodology is comprehensive and ensured our client, THG, received a service whereby they had the confidence in the result and that that the right supplier had been found, by way of a through procurement process;

  • Thorough RFP and invitation to tender process
  • Specification drafting that ensures deliverables and end-client requirements are clear.
  • Robust negotiations through the tender process, to drive out cost and secure greater value from the supply chain.
  • Working with THG’s Legal team, the drafting of comprehensive supplier contracts to ensure THG’s legal and commercial interests are protected.

Business Benefits

We completed our engagement in February 2019, delivering significant benefits to THG;

  • Category cost-savings ranging from 8-19%
  • The introduction of comprehensive and robust supply contracts, as a result of our tender processes.

We were pleased to receive a fantastic testimonial from the Head of Indirect Procurement of THG;

“The unique offering Oculus Procurement provide has been a fantastic building-block for the development of procurement at THG. Whilst capable of operating the full sourcing process they provide real choice for the client, providing business benefits and traditional cost savings”.

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