Industrial – Leveraging spend in a global supply chain

​Background

Global metallic wear solutions company looking to reduce raw material, sub contract and indirect purchasing costs.  Product costs were influenced significantly by changes in globally traded commodity prices making margins volatile.

What We Did

  • Completed a supply chain and sourcing assessment across 5 sites in Europe and North America

  • Used a 3 stage sustainable improvement approach: Stabilise and Gain Control, Develop Competence, Accelerate Improvement

  • Trained global team in strategic sourcing and supported implementation of commodity strategies and tactical quick wins

  • Improved inventory management processes and demand forecasting

  • Improve the linkage between materials price and sales price to maintain margin 

Results

 

  • Delivered annualised savings of €2.7m in first year

  • Reduced reliance on several single source suppliers

  • Reduced risk from core business processes impacting purchasing

  • Embedded strategic sourcing process with deeper understanding of cost and performance drivers

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