Hiring EPG became a clever move for an industrial maker
COMPANY
A leading industrial maker with an annual purchasing volume from China of $25M in sheet metal fabrication, CNC stamping, CNC precision machining parts, and welded parts.
SITUATION
The company's owner pressured purchasing management to significantly improve short-term financial performance by reducing direct purchasing costs by as much as $5 million. The company's Chief procurement officer turned to EPG to complement their procurement capabilities with our full suite of procurement outsourcing services.
EPG CONTRIBUTION (at a glance)
• By employing EPG, the client gained direct access to advanced procurement capabilities, knowledge, and skills that they lacked.
• Strategic Supplier Relationship Management.
• Redesigned components to reduce cost.
• Operative and strategic sourcing.
• Implementation of better payment and MOQ-terms.
• Quality management (QC & QA).
• Established standard KPI collection and implementation for monitoring supplier performance and enhanced procurement visibility.
RESULT
Cost savings of $3M in the first 10 months. An additional $2M in savings over the next 8 months. 20% reduction of purchasing costs over 18 months. A new 2022-2023 procurement strategy with our client is already in operation.
Purchasing cost reduction (in $ M)
* We take our clients' confidentiality seriously.
While we've not included their names, the results are real.
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