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Case Study

Strategic Sourcing Consulting

Customer

Fortune 100 corporation, world leader in Power and Automation Technologies with headquarters in Europe

Challenge

One of customers, largest North American transformer facilities was feeling margin pressures due to various factors. Global Supply Chain leadership team sponsored a project to drive cost out thru use of strategic sourcing techniques. Wide variety of parts, short cycle times, long standing relationships with existing suppliers and tight inventory requirements made the application of strategic sourcing techniques difficult.

Approach and Results

Case Study: Strategic Sourcing ConsultingWe worked closely with customer’s, on-site purchasing team to fully understand the business, parts, technical and commercial requirements. 7 step strategic sourcing process was used to profile and analyze the parts being purchased. An interactive workshop was scheduled with all stakeholders, after key requirements for each category were understood. Workshop was utilized to review proposed strategy, get buy-in of all stakeholders, define key deliverables and timelines. Multiple Request for Proposal (RFP) packages were created, and sent to current and potential suppliers in North America and Asia. Selection of suppliers and business award strategy was jointly finalized with customer and part approval process was initiated with several new suppliers. Commodities covered thru this project included: electrical, electronics, MRO, Utilities, Facility Maintenance and Repairs, Steel, Transportation and Packaging Supplies. High single digit savings were realized.