Keywords

• Supply Chain
• Purchasing
• Transportation & Logistics

Description

• Background

The client is a leading global supplier of Transportation and Supply Chain Industry. Having grown quickly to become a top global supplier through acquisitions and organic growth the company inherited many partnerships with suppliers across multiple purchasing commodities. To rationalize expenditures and strengthen relationships with core suppliers the company needed to deploy a purchasing commodity strategy on the roughly 4B Euro spend. The MACOA team was invited to lead this assignment and set-in place the new approach.

• What did we do?

Through our proprietary methodology, we followed a five-step approach to define category, analyze the supply market, position the category, set objectives & strategic initiatives and deploy an action plan.

Through the advisory process the company understood better its position in the supply market, analyzed spend data, validated current supplier base, identified new potential supply partners, rationalized spend per category and supplier, launched a new supplier contract program and devised a supplier management program.

Having in-scope 4 categories, the same process was deployed across all of them. The initiatives related to the following purchasing categories: Data Network, IT Professional Services, Temporary Labour and Trucks and Tractors. Each of these categories included several sub-categories which have been structured in the above-mentioned structure.

• Results

Through this approach the company improved had short-term benefits by positioning themselves better at the negotiation table, revised contracts, and deployed a supplier risk management program. On the mid and long run, the company achieved savings in double digit million Euros per year, deployed the new purchasing organization at Europe level, and deployed a supplier management programe.