Upgrade Procurement, Reduce Risk, & Capture Long-Term Savings (CS270)

Written by Maine Pointe | Nov 8, 2022 11:45:00 AM

This story is for CEOs who

Have lost essential services in the aftermath of a carve-out
Are struggling to rebalance supplier relationships
Lack sufficient data about spend and the root causes of procurement problems

The Challenges

After carve-out from a larger organization, a global provider of clean alternatives for manufacturing and refining processes found itself with a weak procurement team and little visibility into its supply chain.

Salvaging supplier relationships, ensuring deadlines were met, and reducing risk

SGS Maine Pointe:

Mitigated the risk of sole sourcing and drove prices down by seeking alternative suppliers on-shore, in-shore, and near-shore
Gave the C-suite visibility into operations and potential bottlenecks, enabling data-based decision making
Provided a single source of truth by retooling the SIOP process with real- time data, KPIs, and more consistent compliance and tracking
Created a spend cube that provided a detailed and reliable analysis of the who-what-where of procurement spend

Lessons learned for other executives

Sustainable change to business practices is possible with an end-to-end supply chain analysis and SIOP process
Root causes seldom reside in just one function; planning, sales, procurement, operations, engineering, and logistics all contribute
Re-alignment after a carve out requires a Total Value Optimization (TVO)TM approach

The Results

$4.8M ROI in year one
$9.35M EBITDA savings in year one
19 new suppliers
Upskilled engineering to stop unplanned changes
Developed spend cube for detailed who-what-when- where analysis and insight into procurement spend
Increased visibility into operations bottlenecks to expedite problem solving
Established sales, inventory, and operations planning (SIOP) processes

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