What do we source?

Glanbia’s sourcing strategy is to consolidate and manage its common purchases where appropriate by category and cross-business unit co-operation. This is led by appointed Category Managers who combine purchases, expertise and supplier engagement for optimum group results.

Our Procurement teams are required to apply responsible sourcing criteria to our selection decisions and require all suppliers to be compliant with the laws and regulations and social customs of the countries they operate in and to comply fully with all Human Rights, Labour, Food Safety, Environmental and Health and Safety regulations.

Our key purchase categories

Ingredients
Packaging
Chemical
Engineering, Maintenance & Capex
Business Services
Professional Services
Global IT
Logistics
Energy
Agri-Resale

Glanbia Sourcing

Glanbia uses SAP Ariba to facilitate our e-Sourcing requirements via an online portal. This offers suppliers an efficient tool for collaborating with Glanbia while improving transparency throughout the tender process. To many suppliers, the starting point for cooperating with Glanbia is to participate in an RFI/RFP or Auction.

An RFI (Request for Information) is used to gather non-competitive data on the capabilities of potential suppliers. The information is used to build a database of potential suppliers in the market.

An RFP (Request for Proposal) invites suppliers to provide specific information in relation to a current business need for products or services. We ask suppliers to respond online via Ariba in the format created by the Glanbia category mangers and submit a competitive proposal. This can be done as a single or multi-round event and is facilitated on a sealed bid basis. No pricing or ranking information is shared between suppliers and no live event will take part.

An Auction, Glanbia is increasingly using e-Auctions to boost fair competition between suppliers. E-Auctions are used for live bid events when we have received an initial pre-bid from suppliers. Suppliers are only ever invited to Auctions once verified and approved by Glanbia.

Glanbia Sourcing Lifecycle

  1. Prepare RFx. A Category manager will have a strategy to minimise risk, enhance performance and deliver savings targets to key business stakeholders. A Sourcing Event (RFI, RFP, Auction) will be created via a Sourcing Project in Ariba
  2. Publish RFx. Once the Sourcing Event is prepared, the Category Manager will review with key stakeholders and publish
  3. Process & Monitoring RFx. A Category Manager will answer supplier questions and regularly monitor the open RFX, responding to questions about the RFx through ‘event messages’, resolving open issues and ensuring that suppliers are completing their proposal within the scheduled timeframe.
  4. Analyse Responses. For each Sourcing Event (RFI, RFP, Auction), the Category Manager will analyse the supplier responses. This analysis can be made based on several factors and not just the final price.
  5. Award RFx. Scoring can be done manually or via Ariba.. Pricing can be analysed by the system based on historical pricing of products and services to determine savings. The Category Manager will then be able to Award the event to the successful supplier.
  6. Contract Creation. The follow on step in the sourcing lifecycle will be the creation of a Glanbia contract in line with our legal requirements.

glanbia sourcing lifecycle graph

Glanbia Contracts

After a supplier has successfully participated in a Sourcing event and has received an award notification, Glanbia will initiate a contract via Ariba to document the commercial arrangements.

This contract will ensure the delivery of goods or services will meet the agreed Terms & Conditions of Purchase as outlined by our legal team. Our T&Cs are broken down regionally to reflect our global footprint and are available to view on our website.

This contract will be a signed agreement via DocuSign which establishes the terms of the relationship between Glanbia and you the supplier. Terms for example may include payment terms, termination, confidentiality etc.

The type of contract to be drafted will be based on select criteria, for example Contract Value, Duration, Risk and Potential Liabilities. Purchasing in conjunction with our legal team will decide which is the most appropriate.