Supply Chain: 16% gains in annual costs

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16% cost reduction in supply chain in 12 months

  • June 23, 2016
  • matt girvan
  • supply chain

Client – Fortune 500 Science and Technology firm, global sourcing and supply chain.

Challenge – Operating profit for the entire business was not meeting target. A low volume, high mix supply chain made it very difficult to drive profit.  A string of managers had tried and failed before.

Solution – We created a brand new team from the ground up, developed new supplier management methods and new strategy workshops. We were then able to make a new global strategy for sourcing and develop hundreds of cost saving projects. We executed those projects with a high sense of urgency to realize in year savings.

Result – The team achieved 16% annualized savings, more than 10% of which occurred that year. The team contributed 40% of the total operating profit of the business that year with only a small team.