A leading global supplier of branded components to the automotive aftermarket had recently undergone a transfer of ownership as well as a strategic shift from manufacturer to distributor and marketer. The company was facing declining market share driven directly from competitive pricing opportunities that their competitors had been taking advantage of.
As a preferred operational implementation partner for the company’s private equity owners, Maine Pointe was invited to help transform the supply chain, improve EBITDA and increase competitiveness.
Our analysis showed that non-competitive domestic supply agreements and an unmanaged international supply base were restricting growth. However, we also identified an enormous opportunity to achieve sustainable and enduring benefits across business functions.
Maine Pointe’s experienced team worked in close collaboration with the company CEO and divisional presidents to help break down functional silos and provide insight into pricing opportunities that they were not taking advantage of. As a result, the global procurement organization began its transformation into a world-class structure able to engage with the global supplier community to identify and drive value in their direct and indirect material purchases. More specifically, our client:
Maine Pointe used its TVO™ approach to help the client overcome procurement complexities and form new, highly advantageous strategic partnerships in low-cost countries paving the way for organization transformation resulting in:
Increased optionality and the ability to source better quality products at the most advantageous price have allowed access to different channels and top-line growth opportunities.The procurement function has moved up the maturity curve and has begun to transition away from many of the historic constraints to a new, differentiated model. A model we call Total Value Optimization™ (TVO). The client has implemented all the organizational changes that Maine Pointe has proposed and is committed to using the methodologies going forward.
I am happy to report that our savings targets were exceeded. We were supported by a strong Maine Pointe team - from the initial analysis to the end of the project - and their practical and linear approach to the project has laid a solid foundation for future improvements within the organization. Accordingly, I would not hesitate to recommend Maine Pointe.” CEO
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