Company Overview: $1.5B Aviation operator and repair center
Company Overview
Performance Issue
- Global Spend: $20M on outbound freight
- Total Suppliers: 550 Suppliers in 35 Countries
- Level of Spend Information Detail: Manual and GL Level only
- Invoices Processed: 50,000 per year
- Resources Allocated: 5 to process freight invoices
Before
# of Suppliers = 550
# of Invoices = 50,000
Improvement Approach
- Consolidate Global Spend
- Automate GL Coding
- Remove Touch Points
- Monitor compliances
- Capture detail in the system
- Reduce the number of suppliers
Results
- $4.8M (24%) per year – Reduction in Freight Cost
- $2M per year – Expect additional yearly cost savings due to warehouse & shipping rationalization
- $2M per year additional savings identified – Based on $10M spend for inbound freight
- $160K in Savings – Removal of 4 Employees as a result of improved efficiency
After
# of Suppliers = 15
# of Invoices = 180