A multinational construction equipment manufacturer built through the acquisition of 18 entrepreneurial companies was suffering inefficiencies and loss of market leverage due to decentralized procurement practices. The organization’s stock price was under pressure and activist investors were demanding action.
Senior executives had no visibility into company data and were unable to accurately forecast future requirements, resulting in a misalignment between sales expectations and inventory. This, combined with a lack of communication between the businesses, meant no one in the organization had an accurate picture of what was happening in the market.
Leadership engaged Maine Pointe to help them achieve millions of dollars of annualized, sustainable savings in procurement across all 18 subsidiaries on five continents.
This was a highly innovative business with a very strong product. However, the decentralized model and lack of data meant leadership was operating in the dark. Maine Pointe’s team made use of advanced data analytics to give them the visibility they needed to take advantage of the economy of scale offered by a center-led approach. We applied a multi-path, Total Value Optimization (TVO)™ approach which included: Procurement and negotiation skills-transfer, organizing and facilitating supplier conditioning events, implementing a procurement management operating system, shifting to strategic sourcing driven advanced data, moving to a center-led organization structure, deploying our leadership and organization improvement team to coach and mentor people across the client’s organization.
Our solution included:
By introducing and embedding center-led thinking, sourcing capability and expertise and leveraging economy of scale, we were able to deliver financial benefits that exceeded the CEO’s expectations. These processes are now an integral part of the client’s strategic sourcing toolkit.
Maine Pointe’s hands-on approach and collaborative, cross-functional Total Value Optimization (TVO) methodology delivered the following benefits:
Our supplier base now understands that we bring a much larger spend to the market than was previously visible. We now understand the risks and opportunities within our supply chain. I would recommend Maine Pointe to any organization looking to transform their procurement, sales and operations planning and data analytics capabilities into competitive advantages. would highly recommend Maine Pointe. Our experience has been excellent and the results speak for themselves.” - Client CEO