Project Scope
- Prepared a detailed enterprise-wide spend analysis to help identify and prioritize opportunities
- Executed strategic sourcing in the areas of Electronic Components and PCB Assemblies – $28M in spend, 4,500+ parts, multiple plants in multiple countries. $20+M in spend was NA based and bid competitively 6-months prior.
Approach
Conducted a tailored spend diagnostic leveraging spend data from 27 different sources and systems, including the analysis and categorization of $1.0B+ of addressable spend
Performed strategic sourcing as a Proof of Concept in the following areas:
Electronic components (i.e., Integrated Circuits, Capacitors, Resistors, Diodes, Transistors, Logic) and PCB Assemblies
Conducted strategic sourcing training workshops delivered to 20+ stakeholders on 3 continents
Leveraged global spend. Incumbent suppliers had never seen the total enterprise spend.
Went direct to manufactures for high spend categories.
Consolidated distributors and expanded the list of approved manufacturers; increasing substitute components
Results
Spend analysis and category prioritization identified up to $27M of potential savings opportunity through three waves of the strategic sourcing program
Delivered ~$1.5M (5.3%) of savings with existing supply base within 4 months
Improved procurement capabilities through training (Strategic Sourcing Methodology, Interviewing and
Negotiations) that embedded best practices, associated tools and templates for ongoing sustainable
sourcing savings
