Sourcing Indirect MRO and Facilitating Goods
Spend Consolidation and Supplier Aggregation Programme
Sustainable value created
- Long-term partnerships with the strategic suppliers and reduced number of suppliers
- €3.7 million in price and spend savings and additional TCO savings of €2.6 million were realised, resulting in total savings of €6.3 million, a 21% reduction of total spend
- Less workload as a result of more efficient procurement processes, clear governance, and a compliance strategy for tail spend
- Through increased use of e-catalogues, operational efficiency and savings have been improved
Client Profile
With a turnover of over €3 billion, this company is a global leader in the production of a few specific steel components for a variety of industries, operating in 45 countries.
Project Scope
The project scope included all spend related to operations. This multinational requested global sourcing pilots on Tools & Products, Office management (Office supplies and furniture), IT Hardware & Accessories (Excluding PCs and Mobile), and Commercial Electrical (Electrical Parts and Supplies).
This company’s objective was to integrate global operational expenses and achieve savings, while at the same time streamlining purchasing processes and reducing the number of suppliers.
Hudicor’s Approach
We began by executing the sourcing projects on the 4 selected pilot categories. We first conducted an internal analysis for each spend category to map the global spend and requirements. Following that, we conducted an external supply market analysis. We used the insights gained in these analyses to develop and implement a sourcing strategy (RFX of FBN).
As a final project, a tail spend and marketplace analysis was undertaken, resulting in a compliance strategy for tail spend.
€3.7 million in price and spend savings were realised, on TCO an additional €2.6 million was saved, resulting in total savings of over €6.3 million (21%)
Interested in accelerating procurement performance and savings?
