Uncovering major savings in procurement
COMPANY
A European automotive company with an annual purchasing volume from China of $50M in engine components and connecting rods. The company had taken steps to improve procurement processes by consolidating warehouses and reducing inventory, but more work was necessary. With a significant part of the procurement activities taking place in China, it was essential for the client to have a team of highly proficient and effective procurement and supply management executives to manage the processes. EPG helped the client implement and manage a strategic sourcing plan to increase buying power and lower costs.
SITUATION
The company had already taken steps to improve procurement processes and capabilities through existing initiatives such as:
• Reorganizing around commodity teams
• Consolidating warehouses
• Reducing excess inventory
Management felt more work was needed, and asked EPG to help achieve two objectives:
• Realize significant cost savings in the short term
• Build world-class sourcing capabilities
EPG CONTRIBUTION (at a glance)
RESULT
$7.5M+ in direct savings for our client after 12 months.
* We take our clients' confidentiality seriously.
While we've not included their names, the results are real.
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