Case Studies

Client
• Global Diversified Industrial Company.

Issues
• Little cross division collaboration on indirect materials and services procurement.
• Resistance at the division level to share procurement responsibilities with corporate.

Approach
• Conducted cross functional workshops to identify the products to be considered.
• Created cross-divisional, cross-functional teams to lead the projects identified.
• Collected material specifications, product performance requirements and annual usage forecasts.
• Established company-wide specifications for servers, laptops and desktop computers.
• Executed global supplier outreach.
• Identified screened, and pre-qualified potential suppliers.
• Completed initial round of “paper quotations”.
• Identified the existence of a market for an electronic auction.
• Executed a global electronic auction for $25 million in annual spend.

Results
• Identified and selected one supplier to supply servers, laptops and desktop computers globally.
• Standardized product specifications globally.
• Achieved annual savings of $12 million.
• Implemented global supply and service contracts for all products.

Tools
• Global Strategic Sourcing
• Total Cost Management
• e-procurement
• Procurement Transformation