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.
Company leaders had worked with traditional consultancies in the past and, as a result, were highly skeptical about the results that could be achieved. They viewed this as a ‘procurement’ exercise focused solely on price rather than on total value. Maine Pointe’s team set about changing this view, consolidating the hundreds of vendors previously used into a very limited number of accountable partners across all sites – committed to driving savings and operational efficiencies across the business. Our Total Value Optimization™ approach included:
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.
As a result of our proven ability to implement change and deliver real financial results, the client has engaged Maine Pointe to create, implement and sustain further improvements across its five major US sites. This engagement will add operations to the scope of an engagement that already includes procurement and logistics, providing a great example of a Total Value Optimization™ driven engagement.
We need Maine Pointe's skills at implementing change, creating real financial results and working with departments to drive the new way of operating." EVP Manufacturing and Engineering