Procurement Savings at a Fortune 500 company
A global Fortune 500 company needed to quickly reduce indirect spend as part of a larger turnaround effort to increase earnings. The initiative was spearheaded by C-level executives despite reluctance at lower levels of the organization.
Captured $13.4M in savings throughout the global supply chain in 4 months.
Developed robust vendor data set that identified $20M in new savings with strategic negotiations
Generated tailored negotiation tactics to capture value from service-based and product-based providers - now seen as Best Practice across company.
Vendor Summit on behalf specialty retailer with 3,500+ North American locations
A large health & wellness retailer needed to communicate a new merchandising strategy and to do so, engage their vendor community in order to be successful. Executives needed $20M in savings and new funding to bring the strategy to life – with only 6 weeks to execute.
- Impact from summit and key vendor Top-to-Top meetings: $32M in savings (+60% to plan)
- Ongoing results achieved:
- Improved supply chain KPIs
- Increased terms by 12 days on average
- Secured key product exclusives
Food distribution research and RFP on behalf of $15b+ grocer
A national grocer with 425+ locations employed multiple distributors for its food business but was failing to realize the pricing or service level support it needed. With significant growth projected, a detailed understand of its distributors’ capabilities, support levels and pricing was necessary - along with a recommendation to consolidate or remain distributed.
- Detailed interviews and research on regional and national determined fact-based recommendation
- Developed benchmark and conducted RFP worth ~$50M
- Directed contract negotiations on behalf of grocer with distributor to realize:
- Cost savings of over 10% vs. baseline
- Contractually agreed upon KPIS and specific timelines
- Fully-funded, localized, specialized team to support grocer
Global parcel project for Fortune 50 retailer
Across international retailer, departments saw rapid sales growth, but profits being hampered due to no gains in cost efficiencies or enhanced service levels expected from specific carton transport providers. In order to grow margins, executives needed benchmarks, analytics tools, forecasting tools and renegotiation with carriers necessary with a goal of $10M in cost savings within a year.
- Intense data gathering revealed key areas in which to engage carrier to achieve greatest value
- Tailored dashboards developed allowed data to be leveraged in future negotiations
- Service levels and highest value KPIs significantly improved
- Savings over determined benchmark
- $20M in year 1
- $50.2M by year 3