Supply Chain Management – Strategic Sourcing

//Supply Chain Management – Strategic Sourcing
Supply Chain Management – Strategic Sourcing2019-05-21T17:22:36+00:00

Company Overview: Global Heavy Machine Manufacturing Company

Business Imperative

  • The client recently divested from a larger company and wanted to establish its own procurement departments.
  • The expectation was that the client will pay more for all its products and services because they just lost their buying power.

Scope & Approach

  • Review all its indirect spend and assist in negotiating new contracts.
  • Establish a new indirect procurement organization and establish visibility of global spend information by category.

Results Achieved

  • Analyzed $110m global indirect spend in 14 categories. Identified nine categories where we can deliver savings. The categories were freight, travel, facility maintenance, MRO, office supplies, IT hardware, temporary labor, utilities and P-Card.
  • Performed our six step sourcing & procurement methodology and delivered $11m yearly sustainable savings in less than six months of work.