Strategic Market Research – Setting Up a Sourcing Strategy for Critical Insulation Raw Materials
Challenging sourcing strategy for insulation raw materials
Sustainable value created
- In-depth insights in the global supply market, industry opportunities, and its dynamics thanks to extensive external analysis
- Identification of various significant saving opportunities from extensive internal and external analyses
- Mapping of current market dynamics, price trends, and drivers
- Clear identification of unused potential for the client in the current market dynamics
Client Profile
This European company specialises in construction industry solutions. They have more than 100 locations and are listed on the American stock-exchange.
Project Scope
The project covered all spend related to a critical raw material used in insulation, amounting to nearly €200 million.
The company’s objective was to conduct a thorough analysis of the global supply market, aiming to gain a comprehensive understanding of its dynamics, trends, and potential opportunities. In addition, a key focus was to identify and evaluate prospective suppliers while assessing the company’s current position in relation to them.
The raw material industry in question is rather consolidated by nature. By strategically capitalising on untapped opportunities inherent to the market dynamics, significant savings could be achieved through the expansion of the supplier base beyond Europe. Moreover, forging strategic sustainable partnerships with carefully selected suppliers would unlock even more substantial savings.
Hudicor’s Approach
The strategic sourcing project encompasses both internal and external analyses. Internally, it entails a thorough evaluation of raw material expenditure and pricing, with the creation of a savings model to uncover untapped opportunities. Externally, the project involves a comprehensive mapping of the global supply market, analysing its structure while assessing the company’s position within it.
Maximal exploitation of untapped potential could lead to over €20 million in annual savings.
Interested in accelerating procurement performance and savings?
