A $100M manufacturing company (oil and gas) lacked a strategic sourcing strategy linked to driving continued savings. Flow Consulting was asked to help them achieve significant cost savings by creating a new strategy.
Flow Consulting worked with the internal team of purchasing agents and the finance organization to identify $5.2M in annual savings. These cost savings where implemented with a variety of sourcing strategies within 23 cost-reduction projects identified in areas such as:
- Data Mining and Analysis
- Commodity Strategies
- Supplier Risk Analysis
- Competitive Bidding and Negotiation
- Long-term Contracts (preferred suppliers)
Flow Consulting together with the internal team helped the company save $1.9M over three months by implementing 9 of the 23 identified reduction projects. This was done through a combination of coaching and project management. The result was a return-on-investment ratio in excess of 50-1 in terms of consulting fees and expenses.