Strategic Sourcing, Cost Savings

M&A Realization
Written By INOVAT

Saved $1.9M over three months.

Case Studies

Business Issue

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.

Approach Used

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)

Results

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.

INOVAT http://inovat.com
Previous

Leveraging Purchasing Strength
Next

Due Diligence for Growth