Project Scope
- North American and European manufacturing locations
- Implementation and execution of a rigorous global strategic sourcing process
- Provide recommendations to improve overall procurement capabilities and establish a repeatable and sustainable long-term sourcing program
- Make vs Buy analysis on internal manufacturing processes
Approach
Conducted key stakeholder interviews from Procurement, Finance, Manufacturing, Engineering, Quality and C-Suite to gather baseline costs and understand current state sourcing processes
Performed a tailored spend diagnostic (spend cube) leveraging spend data from multiple different sources and systems, including the analysis and categorization of $1B of addressable spend
Identified that ~50% of direct material spend was sourced with suppliers withing 150 miles of its manufacturing location in the NE part of the US
Developed cross functions teams (Procurement, Engineering, Manufacturing, Quality and Finance) to drive sourcing initiatives
Executed a rigorous global strategic sourcing process over 6 waves and 2 continents of direct and indirect category spend including: Metals (Aluminum, Brass, Steel, and Powdered Metals), Belts, Castings, Elastomers, Plastics (Resins, Injection & Blow Molding, Structural Foam and Thermoforming) Electrical Inductive Components (Motors, Transformers, Solenoids and Power Supplies), Packaging, Wire and Cable, User Interfaces, Printed Circuit Board Assemblies, Logistics (Air, TL, LTL,3PL, Express Services), Contingent Labor, Print Materials, Travel (Airlines, Hotels and Rental Cars), Forklifts, Office Products/Suppliers, and Telecommunications
Trained 100+ cross functional professionals in the areas of: Methodology, Effective Presentations, Site Visits, and Negotiations
Results
Delivered more than $100MM in annualized cost savings (>15%)
Achieved non-price benefits: improved cash flows thru extended payment terms, improved inventory turns through the uses VMI and consignment, better On-Time-Delivery, improved quality (lower PPM commitments)
Obtained engineering support for New Product Development and Product (SKU) Rationalization
Grew Best Cost Country sourcing as a percentage of spend from 10% to over 20% with average landed
cost savings of more than 35%
Strategic sourcing training successfully embedded best practices and associated tools and templates for ongoing sustainable sourcing savings
