Supply Chain Management – Strategic Sourcing

//Supply Chain Management – Strategic Sourcing
Supply Chain Management – Strategic Sourcing2019-05-21T17:08:29+00:00

Company Overview: $3B Industrial Engineering and Manufacturing Firm

Company Overview

A global industrial engineering and manufacturing firm. The company is present with over 170 production and service sites around the world. It has more than 15,000 employees in over 40 countries. The annual revenue is $3B.

Business Goals

  • Cost reduction, net cash flow, and streamlining cross-enterprise and suppliers’ processes.

Solution Deployed

  • CPO letter sent to over 300 suppliers for price negotiations.
  • Volume transfer to Best Cost Regions.
  • Develop sourcing  plans in different regions.

Results delivered

  • Payment terms has been extended almost 20 days.
  • Price reduction after the closing of the asset deal, $500K potential savings.
  •  Signed agreements with three global suppliers in MRO. Savings: $250K.
  • In North America Region, sent RfQs to vendors for core items with top spend and choose the winners for best pricing. Saving over 10% per year.