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    Manufacturing Company Success Story

    Implementing a best-in-class procurement function 

Maine Pointe helped a leading manufacturing company successfully transform its procurement team through knowledge transfer and leadership

The challenge

Our client is a leading manufacturer of specialty, flat-rolled aluminum products, serving the HVAC, building and construction, as well as light gauge converter foil and flexible packaging end-use markets in the United States. The company has grown from a startup capacity of 40M pounds to over 372M pounds today and employs 772 associates at its four facilities. Despite its significant growth, the company did not have a cohesive, cross-organizational set of procurement and sourcing policies and procedures. The existing procurement organization was transaction oriented with questionable data integrity and frequent non-compliance with policies. 

The solution

Senior executives engaged Maine Pointe to help develop and implement a best-in-class procurement function. Our team discovered that the in-house procurement team did not have the necessary skills to implement best practices and action plans. In addition, a general absence of ownership and accountability had led to a lack of trust in the procurement organization. As a result, operations would work around rather than with them. Our procurement and leader and organization improvement (LOI) experts worked together with senior executives to:

  • Analyze $397M worth of direct and indirect spend to drive strategic procurement savings
  • Present and implement strategic and tactical processes to the procurement team using an “on the job” training environment
  • Reinforce the procurement team through practical applications and one-on-one coaching
  • Recommend an organizational structure that provided cohesion and integrity 

The results

  • Reorganized the procurement team and realigned with best practices to source goods
  • Enhanced the professional environment with an increased emphasis on planning, execution, and category leadership
  • Delivered annualized savings over $10M in situation, exceeding the client’s expectations
  • Move the procurement function up the TVO Maturity Curve™

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