Last Updated on Friday, 06 August 2010 21:12
'Cloud' 3PL Logistics Enables LCC Sourcing
With local suppliers delivering direct to the companies UK manufacturing sites using JIT supply mechanisms, handling and delivery costs were minimised. Additional benefits of consignment stocking, paperless transactions and responsivness had been hard won over years of rolling out kanban supply methods and developing suppliers to improve flexibility and reliability. Essentially suppliers had ownership of delivery direct to the point of use and contract pricing reflected this.
Combined with the application of 'lean' techniques, assembly plants operated efficiently with high levels of flexibility.
Last Updated on Friday, 06 August 2010 21:10
Zero to £8M Savings in 12 Months
When an operating division of a FTSE100 plc was sold to a PE firm, the new owners wanted more value from the companies £80M indirect spend.
As a new independent company, the firm no longer had the advantage of calling on the parent group's corporate purchasing team. With many shared deals, there was concern that the new firm's reduced buying power (1/5th of the old parent group) would result in cost increases.
A target was set of achieving £8M absolute
Last Updated on Friday, 24 June 2011 22:32
LCC Sourcing Expertise Accelerates Savings Programme
For any company facing the multi dimensional challenges of low cost country sourcing, the question is knowing where to start.
The project manager, asked iProcure Solutions to provide some help and insight.
By identifying and recommending how low cost country suppliers would need to be managed on the ground, and by providing some target companies with proven track records for delivering quality products with high levels of services, the client company was able to kickstart it's sourcing programme, and shorten the time required to find, select and engage with appropriate suppliers.
Last Updated on Wednesday, 11 August 2010 07:23
50M Euro Savings, Strategic Alignment with Business Needs
When working with a Nordic multi-national specialist paper manufacturer, iProcure Solutions was able to develop a robust Procurement Strategy and Roadmap to drive the next phase of the companies sourcing development.
With 7 capital intensive manufactuing locations around the world and a spend of 200M Euro across three business divisions, the newly formed central sourcing group was organised by category.
Their main tactic had been to increase competition in the marketplace by continual tendering of raw material contracts amongst a set of qualified suppliers, but
Last Updated on Friday, 24 June 2011 22:21
$1.3Bn Procurement Transformation (Indirects)
Working as part of a larger consultancy team, iProcure Solutions, played a lead role in driving the transformation and accelerating the journey to best in class indirect procurement for a $8Bn divisions of a large global petrochemicals company.
Proof of concept involved running a pilot programme to deliver $22M of savings over an 11 month period on a restricted scope of spend, across global categories.
With multiple individual sourcing projects, planning and driving stakeholder engagement and participation, building internal relationships and supporting the existing procurement team - focus was on driving change through delivery.
In depth benchmarking, setting out a plan for reaching best in class performance, through organisational development, category plan development, application of new processes, ways of working, strategy and performance management, this was not just about delivering short term financial returns for the business.
Last Updated on Friday, 24 June 2011 22:17
£30M of benefit, Global Structure
Working for a PE owned market leading manufacturer producing industrial equipment for the semiconductor industry, the Procurement organisation was transformed from a multi site based transactional resource to a centrally managed strategic function.
Covering 11 sites across 6 countries, the company spent £200M/year on a range of precision engineered parts. With 800 suppliers, supplying ~80000 SKUs and making 500000 line item deliveries per year to 10 operational sites around the world. The challenge was to reduce cost, enhance supplier performance, accelerate time to market and improve currency hedging by increasing the proportion of $ spend.
Last Updated on Friday, 06 August 2010 21:11
Cutting Leadtimes, Costs and Inventory with JIT Material Supply
Integral to a wider supply chain and manufacturing 'lean' programme, was the need to reduce supplier leadtimes and adopt a different method of managing deliveries. The existing MRP driven ordering process provied to be unfit for purpose. With tens of thousands of SKUs to manage and hundreds of thousands of individual deliveries to control, the system became unworkable. Shortages, high levels of inventory, double handling, unpaid supplier invoices, space requirements and teams of scheduling and expediting staff were the result.
Last Updated on Friday, 06 August 2010 21:17
Enabling Rapid Indirect Procurement Benefits
Having previously enjoyed the benefits of being an operating division of a large FTSE 100 PLC, replete with its own central procurement team, the company was sold to new owners who appreciated the potential for optimising the £80M of global indirect spend of the now independent company.
Faced with delivering in-year savings of £8M from an indirect spend of £80M within a 12 month timeframe, it was essential to understand the companies spend in detail.
With no dedicated indirect procurement staff, and historically no responsiblity for indirect spend the task of making 10% in year savings within a 12 month timeframe was assigned to Paul Kimber - Head of Global Procurement.
Last Updated on Friday, 06 August 2010 21:14
'Connect' Programme drives Value from Key Suppliers
With £60M of spend allocated to strategically critical, technology suppliers, it was a challenge to sustain continous improvements.
Effectively single sourced, the majority of supplied items were 'locked in' through design for the lifetime of the companies products.
Whilst award of new business during product development could be carefully managed, obtaining ongoing benefits from legacy suppliers in the face of declining volumes and raw material pressures was difficult.
Last Updated on Wednesday, 11 August 2010 07:33
Category Plans Accelerate Sourcing Development
When negotiated savings on direct materials dried up for a 250M Euro multinational manufacturer, pressure was on the Sourcing department to secure supply and mitigate the impact of supplier dictated price increases of up to 20%
Increasing tensions between central sourcing and divisional autonomous business areas further exacerbated the situation.
Category managers comfortable with negotiation were not familiar with some of the other approaches that could be applied to their area of responsibility. 'Whilst struggling to manage day to day operational requirements and prioritise different requests from the business, it was difficult for the sourcing team to secure commitment for different courses of action.