The Challenge
As a part of the Procurement Organization, our Client was looking to identify and understand how to generate cost savings by improving relationships with Suppliers and expanding global sourcing opportunities.
Our Solution
We presented solutions to optimize the business model for scalability and flexibility, bringing insights to long-standing challenges.
The Sustained Result
Provided recommendations to further resist price increases, develop alternative contracting strategies, create commodity segmentation & a supplier development strategy, and continue relationship management with Supplier.
• Further Resist Price Increases - Leverage global sourcing opportunities - Continue to implement new technology • Develop Alternative Contracting Strategies - Allows contracting flexibility - Move towards a better balance of long-term and short-term contract - Utilize additional contracting strategies besides volume leverage • Create Commodity Segmentation & Supplier Development Strategy - Measure the Client's level of supply chain awareness - Re-organize commodities - Evaluate Sourced vs. Managed contracts • Continue to Establish relationship Management - Create trust between the Client and its Suppliers - Develop performance measures - Apply process to evaluate suppliers' performance
