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Spurring value creation and cost reduction post- integration, in an inflationary environment (CS263)



This story is for CEOs who

  1. Are at odds with their legacy suppliers

  2. Suffering shipping logistics issues

  3. Need to standardize and upskill procurement post-integration


The Challenges

A global manufacturer and developer of performance polymers faced both capacity and capability gaps in its procurement organization. Newly acquired by a PE firm, the company found its procurement team in turmoil as staff were replaced and added; a second acquisition a few months later increased the pressure.


Saving costs, delivering value, and upskilling procurement in a chaotic environment

SGS Maine Pointe:

  • Diversified suppliers to reduce supply chain and logistics risks
  • Used enhanced supplier Relationship Management to unlock supply constraints and increase near shoring
  • Enhanced procurement processes to ensure value creation goals were met
  • Provided an inflationary playbook for future supply chain optionality


Lessons learned for other executives

  • Post-acquisition integration requires cross-functional adjustments
  • Cost savings are available in every market
  • Strategies for de-risking the supply chain have long-term value


The Results

  • 6% reduction in supply chain costs
  • 50% value creation through supplier optionality
  • Increased procurement capability, strategy, and leadership
  • Overcame shortages using strategic procurement
  • Made logistics more efficient through in-shoring and on-shoring
  • Improved supplier relationships


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