Special
Delivery
I n many supply chain organizations, change hap- pens gradually: a partial reorganization here, a shift in suppliers there, and, after a few years, perhaps
some new software and an executive appointment
or two.
But that’s not how the procurement team at
McCormick & Company Inc. rolls. When the U.S.-based producer of spices and other flavoring products
set a new, long-term agenda that emphasized global
growth, procurement leaders recognized that their
organization could play a crucial role in supporting
that strategy. Rather than wait for change to gradually filter down from the top, they developed a vision
for a new position for procurement in the context
of McCormick’s strategic objectives. After getting
top-level support for that vision, the team embarked
on a carefully planned yet bold change initiative that
can rightly be described as transformational.
Today, procurement at McCormick is very differ-
ent than it was just five years ago. The transformation
program has reshaped the function’s strategy, priori-
ties, and organizational structure. It has also affected
what people do and how they do it, not just at its U.S.
headquarters, but also on a global basis. The procure-
ment team did not adopt that global approach simply
because spices and flavorings are bought and sold
all over the world. It also reflects something that has
been part of McCormick’s corporate culture since the
early 1930s: the “Power of People”—the belief that
every employee is valued and respected, and that each
person plays a part in the company’s success and its
customers’ satisfaction.
A CHANGE IN STRATEGY
The McCormick name is a familiar sight on grocery
store shelves. While the company is best known for
spices and flavor extracts, such as pepper, cinnamon,
and vanilla, it also sells a variety of other products
under its own name and nearly two-dozen other
brands. Just a few examples from the brand portfolio include French’s, Lawry’s, and El Guapo in
North America; Gourmet Garden and Aeroplane in
Australia; WAPC in China; and Ducros, Schwartz,
and Giotti in Europe. In addition to consumer products, McCormick also supplies standard and custom flavorings to food and beverage manufacturers,
restaurants, and other industrial customers.
Headquartered in a suburb of Baltimore, Maryland,
USA, McCormick has approximately 11,000 employees and facilities of various types in 27 countries. In
2016, the company recorded total annual sales of
more than US$4.4 billion in approximately 150 coun-
When the spice and flavoring company adopted a long-term strategy
focused on global growth, the procurement team stepped up with a
bold plan to reshape their priorities and organizational structure. The
initiative has exceeded expectations, with more improvements to come.
BY GRACE WOO AND TOBY GOOLEY
The Power of People:
McCormick & Company’s
procurement transformation
