Situation
The publicly traded manufacturing company had been assembled through 25 acquisitions. However, purchasing functions had not been consolidated, resulting in significant overspending across many categories of direct-sourced parts.
Action
The consultant was part of a six-person team responsible for analyzing the manufacturer’s spend cube and resourcing approximately $1 billion in external spend. Savings were achieved through both supplier resourcing and contract renegotiations with existing vendors, leveraging the company’s combined purchasing power.
The consultant worked closely with newly assigned purchasing managers and supported the onboarding of the subsequently hired Chief Procurement Officer.
Results
The team generated approximately $110 million in material cost savings through resourcing efforts, significantly reducing operating expenses and enabling the newly hired CPO to ramp up more quickly within the existing organization.
Ready to Stop Leaving Money on the Table?
If you're wrestling with strategic misalignment, operational complexity, or heroic growth, we can help.
Schedule a complimentary 60-minute Growth Readiness Assessment to identify your highest-impact opportunities.