Spend consolidation and supplier aggregation programme
Spend consolidation and supplier aggregation programme
Sustainable value created
- Long-term contracts 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 realized. This resulted in total savings of over €6,3 million representing a 21% reduction of the total scope 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-catalogs, operational efficiency and savings have been improved
Client profile
With a turnover of over 3 billion euros, 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. Global sourcing pilots were requested by the multinational on Tools & Products, Office management (Office supplies and furniture), IT Hardware & Accessories (Excluding PCs and Mobile) and Commercial Electrical (Electrical Parts and Supplies)
The objective of the company 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
Hudicor began by executing the sourcing projects on the 4 selected pilot categories. For each spend category, an internal analysis was conducted first to map the global spend and requirements. Following that, an external supply market analysis was conducted. On the basis of this information, a sourcing strategy was developed and implemented (RFX of FBN).
As a final project, a tail spend and marketplaces analysis was undertaken, resulting in a compliance strategy for tail spend.
One of the challenges was to assure former unsatisfying digitalization could be turned around strategic sourcing creates value but can also be a lever to reduce the operational workload.
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