How HD-Group transformed procurement from a support function into a strategic value center - APSentra
Project overview

How HD-Group transformed procurement from a support function into a strategic value center

Client
HD-Group
Industry
Agriculture & Agri-Processing
Retail & FMCG
Scale
Multiple production facilities
Centralized procurement entity
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How HD-Group transformed procurement from a support function into a strategic value center

About the client

HD Group is a food manufacturing holding that unites several factories and production enterprises. Since 2017, the company’s shareholders have been pursuing a comprehensive transformation to adapt to new market realities and modern business management approaches.

For years, procurement was treated as a purely support function. Buyers worked directly on-site at individual facilities, with no unified structure or oversight tools. This created recurring supply disruptions, a lack of transparency, and no way to manage costs strategically.

Challenge

Procurement operations were entirely decentralized: each production facility managed its own supplier relationships independently. The absence of a shared structure made oversight impossible, undermined negotiating power, and created significant operational risk.

This led to several issues:

  • No procurement oversight at the holding level
  • Inconsistent approaches to supplier management across facilities
  • Recurring supply disruptions due to the lack of coordinated planning
  • No transparency in tender processes
  • Weak negotiating position resulting from fragmented purchasing volumes
  • Inability to strategically manage costs and supply chain risks

Key project objectives included:

  • Centralizing procurement under a dedicated entity – Trade Hub
  • Automating supplier interaction and tender workflows
  • Introducing joint planning to minimize supply disruption risks
  • Building a flexible, multi-tier warehousing system
  • Transitioning to long-term strategic relationships with key suppliers
  • Making the procurement function financially self-sustaining

“We reconsidered our view of procurement entirely. Today, we believe that technology gives procurement not just a seat at the executive table, but it gives it the power to become a true value creator for the entire business.”

— Max Leontiev, CEO, Trade Hub

Solution

Before implementation, the APSentra team conducted a full procurement audit of the group. Based on the findings, the procurement function was spun off into a standalone legal entity, Trade Hub LLC, operating under a business process outsourcing (BPO) model.

A comprehensive solution was deployed on the APSentra platform:

  • Strategic Sourcing & Tender Automation: electronic tenders, auctions, and reverse auctions
  • Supplier Management System: a unified supplier portal with online access to contracts, purchase orders, and shipments
  • Contract & Order Automation: electronic approval, signing, and order placement
  • Joint Procurement Planning: synchronization of facility needs with supplier capacity
  • Commodity pricing tools: including raw material futures and factoring mechanisms
  • Electronic document management: full elimination of paper-based workflows

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Results

Full procurement visibility for leadership

Holding management gained a unified procurement control center across all production facilities, with no need for manual data collection.

Single point of contact for suppliers

A single procurement manager is now representing all group entities through a centralized platform. Suppliers received convenient online access to all operations and documentation.

Reduced human error and risk

Automated request routing by category, approval workflows, and order generation significantly reduced the risk of errors and process abuse.

Stronger negotiating position

Consolidating the entire holding’s purchasing volumes into one structure gave the company significantly greater leverage in supplier negotiations.

Procurement as a self-sustaining business

Trade Hub operates on a BPO model: buyers are compensated based on service quality and outcomes. A commission-based model for supplier tender participation supports the unit’s financial self-sufficiency.

Business impact

Procurement at Hlibodar Group evolved from a fragmented support function into a strategic center for cost and risk management.

  • Suppliers gained a reliable, technology-driven partner with clear rules, transparent procedures, and convenient tools for collaboration
  • Production facilities were freed from procurement chaos. Requests are processed automatically, deliveries are jointly planned, and disruption risks are minimized
  • Leadership gained full transparency where all procurement is visible in real time, and decisions are made based on data
  • Trade Hub, as an independent entity, is steadily becoming self-sustaining, establishing a new model for procurement outsourcing in the market

“The future of our company’s procurement is no longer built on the dogma of ‘buy cheaper.’ It is built on a system of shared cost and risk management with our suppliers.”

Max Leontiev, CEO, Trade Hub

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