The challenge

This major manufacturer of commodity chemicals recently combined the business of two companies into one multibillion-dollar global organization. Company executives needed to rapidly capture value to deliver synergy targets communicated to investors.  Maine Pointe was engaged to help deliver these savings across a number of category groups including logistics, raw materials, parts & equipment and site labor services. A key focus area was 3rd party labor, which provided a broad range of site services related to maintenance and reliability across all North American sites. The company was using over 100 different maintenance providers across multiple sites, each managing its own supply strategies and contracts. Some work in improving contracting terms had been done but procedures, rates and staffing levels were inconsistent, with some smaller sites having better contracts than the bigger sites.

This story is for senior executives who:

1. Are currently working with multiple maintenance vendors across multiple company sites
2. Want to reap the financial and safety benefits of having a single point of accountability for maintenance in a highly complex business environment
3. Are ready to raise the bar on performance metrics, efficiencies and the ability to control and manage operations

The results

Our experienced team worked shoulder-to-shoulder with leadership and functional managers to drive change and alignment and ensure strong foundations for future year-on-year savings and improvement.

• Aligned leadership and maintenance teams behind a common goal to reduce costs and improve accountability and control post-merger
• Delivered 14% annualized savings, with long-term commitments for additional future year-on-year savings
• Delivered savings above client expectations
• Consolidated multiple vendors and processes to reduce cost and improve maintenance value and control
• Infused procurement and operations best practices
• Established the foundations for a culture of innovation to drive Total Value Optimization™ through committed cross-functional teams
• Achieved a ROI of 6.1:1

Lessons learned for other executives

• Changing the perspectives of challenging people can be achieved with the right, experienced personnel capable of driving change
• A supplier forum can significantly shift the perception of the potential for change both internally and externally
• A good strategic procurement effort is not necessarily built on the amount of spend you’re working with but how you approach the market