Project Scope
- Develop an enterprise-wide spend cube and an end-to-end assessment of its supply chain to identify and prioritize opportunities
- Execute strategic sourcing in multiple waves of direct material categories
- Provide recommendations to improve overall procurement capabilities and establish a repeatable and sustainable long-term sourcing program
Approach
Conducted a tailored spend diagnostic leveraging spend data from 6 manufacturing sites (multiple systems), including the analysis and categorization of $600M of addressable spend
Executed a rigorous strategic sourcing process in over a dozen direct and indirect material categories: Small Gas Engines, Electrical Induction Motors, Castings (Aluminum Die, Grey Iron & Magnesium), Ocean Freight, Plastics (Injection and Blow Molded), Air Receiver Heads, Pneumatic Nails, Router Bits, Saw Blades, and MRO
Trained a cross functional (Procurement, Engineering, Quality, Manufacturing, Finance, and Sales) team in all steps of the sourcing process
Performed extensive Make vs Buy analysis
Results
Spend analysis and category prioritization identified up to $50M of potential savings opportunity through multiple waves of the strategic sourcing program
Delivered over $25M (14.2%) in realized cost savings in the initial waves
Achieved non-price benefits: over 40% supply base rationalization, improved supplier on-time delivery by over 50%, improved quality (reduced PPM targets) by over 25%, guaranteed year-on-year price reductions by use of Value Add / Value Engineering
Conducted strategic sourcing training (Methodology, Interviewing and Negotiations) for over 70 cross functional professionals that embedded best practices, associated tools and templates for ongoing sustainable sourcing savings
