Challenges
The client experienced two main challenges in their post-pandemic supply chain: increased costs and constrained supply. The purchasing organization’s focus had been on securing part supply through multi-sourcing, thereby reducing volume leverage and supplier proliferation. Additionally, the organization believed that the supply base had no available capacity and was not interested in any additional business or volume.
Approach
Working alongside the client category transformation teams, Claudia guided the organization through the 7-step process utilizing proven tools and templates reinforced with both classroom and hands-on training through the execution of the process. Claudia led the creation of a data management system that not only enabled the execution of the process, but it became the standard for the internal data system that would be used for executing the process as the “new way” of working for the Purchasing organization.
Results
After executing all seven steps in the first wave of a multi-year, multi-wave supply chain transformation, Claudia and the client team achieved:
13% annualized savings
Recommended the transition of 40% of the annual spend to new suppliers
Reduced the supply base by over 30%
Introduced over 60 new suppliers
Established sub-category strategies that merged the internal client needs with the external marketplace dynamics
Negotiated several non-price benefits including quality improvements, supply and on-time delivery commitments, transparent pricing models and future cost-reduction idea generation
