This story is for CEOs who
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Have lost essential services in the aftermath of a carve-out
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Are struggling to rebalance supplier relationships
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Lack sufficient data about spend and the root causes of procurement problems
The Challenges
After carve-out from a larger organization, a global provider of clean alternatives for manufacturing and refining processes found itself with a weak procurement team and little visibility into its supply chain.
Salvaging supplier relationships, ensuring deadlines were met, and reducing risk
SGS Maine Pointe:
- Mitigated the risk of sole sourcing and drove prices down by seeking alternative suppliers on-shore, in-shore, and near-shore
- Gave the C-suite visibility into operations and potential bottlenecks, enabling data-based decision making
- Provided a single source of truth by retooling the SIOP process with real- time data, KPIs, and more consistent compliance and tracking
- Created a spend cube that provided a detailed and reliable analysis of the who-what-where of procurement spend
Lessons learned for other executives
- Sustainable change to business practices is possible with an end-to-end supply chain analysis and SIOP process
- Root causes seldom reside in just one function; planning, sales, procurement, operations, engineering, and logistics all contribute
- Re-alignment after a carve out requires a Total Value Optimization (TVO)TM approach
The Results
- $4.8M ROI in year one
- $9.35M EBITDA savings in year one
- 19 new suppliers
- Upskilled engineering to stop unplanned changes
- Developed spend cube for detailed who-what-when- where analysis and insight into procurement spend
- Increased visibility into operations bottlenecks to expedite problem solving
- Established sales, inventory, and operations planning (SIOP) processes
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Upgrading procurement & capturing long-term savings for carve-out
