Project Scope
- Preparing a detailed enterprise-wide spend analysis to help identify and prioritize opportunities
- Executing a rigorous strategic sourcing process
- Providing recommendations to improve overall procurement capabilities and establish a repeatable and sustainable long-term sourcing program
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 spend diagnostic (spend cube) leveraging spend data from multiple different sources and systems, including the analysis and categorization of $400+M of addressable spend
Executed a multi-step strategic sourcing process across multiple waves:
Finished Chassis, HVAC and Fabrication (Wave 1) and Engines, Axles, Transmissions, Seats, Windows, and MRO (Wave 2)
Conducted multiple training courses for over 50 professionals in the areas of: Methodology, Effective Presentations, Site Visits, and Negotiations
Developed cross functions teams (Procurement, Engineering, Manufacturing, Quality, Sales and Finance) to drive sourcing initiatives
Results
Spend analysis and category prioritization identified over $45M of potential savings opportunity through multiple waves of the strategic sourcing program
Delivered more than $19.6M (11.6%) in annualized savings
Achieved non-price benefits: improved working capital (extended payment terms and improved inventory turns), better On-Time-Delivery, lowered PPM commitments, dedicated engineering resources, and transition assistance (cash payments)
Increased profit margins on Type C and D school buses by over 90%
Strategic sourcing training successfully embedded best practices and associated tools and templates for ongoing sustainable sourcing savings
