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Why choose us - Case study
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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