Why choose us - Case study
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Global equipment manufacturer leverages multi-site spend to achieve 10% in profit
Client Background
£700 Million US-based company with worldwide operations
Mining equipment manufacturer – engineered to order products
Currently emerging from Chapter 11 bankruptcy protection
Opportunity
UK division carries out purchasing independent of other worldwide
locations
No attempts have been made to consolidate purchasing spends
Client culture dictated a fragmented structure with no incentive
for cooperation
Actions
Analysed spend data and historical purchasing patterns
Created cross-functional commodity teams
Conducted thorough purchasing methodology including detailed supplier
qualification and contract negotiations
Effectively negotiated agreements with suppliers that satisfied regional
and divisional requirements while benefiting the whole organization
Signed suppliers to 3-5 year contracts using lowest total cost as
decision driver
Results
Achieved purchasing savings of 10% p.a. on £17 Million
target spend
Global sourcing agreements negotiated
Pricing models implemented to capture all cost drivers
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info@chalgroveuk.com
+ 44 (0)845 056 1242 |
