Sourcing Optimization
Developing Dedicated Global Sourcing Function and Processes at Large Direct Marketing Company
Helped build strategic sourcing capabilities by migrating sourcing responsibilities from merchandising to a dedicated sourcing team and developing detailed sourcing processes, including quote management, vendor management, and quality management. To help efficiently manage sourcing, also crafted an Asia Sourcing Office business case that was approved by the board.
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Material Purchasing and Usage Reduction at Large Steel Castings Manufacturer
Identified $3.3-5.5MM in material cost reduction opportunities in both purchasing and material usage, including: clawing back commodity price increases; consolidating vendor base and re-sourcing key commodities; measuring and reducing material usage; and tracking and controlling non-centralized discretionary purchases. Developed tools to allow robust, ongoing reporting and analysis capabilities for both purchasing and usage performance and created the bid packages for top 6 commodities to launch the re-sourcing process. Within weeks, client team reduced usage by 3%, generating $1.2MM in savings, and completed several re-sourcing initiatives.
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Consolidating and Creating Value-added Relationships with Vendors at Specialty Industrial Equipment Manufacturer
Identified opportunity for vendor consolidation for commodity items and created and helped purchasing team execute associated plan for electrical parts processing, resulting in $450K in direct purchasing savings and $1.5MM reduction in componentry inventory. Comparable efforts rolled out to other commodities.
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Unlocking Truck and Parcel Freight Savings at Portfolio Companies of Middle-market Private Equity Firm Freight
Created fact base for leveraging $11MM of freight spend across 3 portfolio companies of a middle-market private equity firm. Facilitated communication between management of portfolio companies to understand service requirements and the manner in which the individual portfolio companies would conduct freight negotiations. Led RFP process and analyzed new bids based on 2 years of historical freight spend. Created an evaluation matrix based on both cost and service to facilitate vendor selection. Purchasing consolidation led to $1.2MM in savings in the first year and improved freight service.
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Positioning the Buyer for a Fact-based Bid and Subsequent Rapid Savings Capture at Leading Direct Marketing Company
Identified $14-29MM in relatively easily achievable savings (sourcing, freight, and catalog opportunities, along with a $26-37MM potential from inventory reduction), which collectively far exceeded management projections. Due diligence scope included China sourcing costs, outbound freight, catalog printing/mailing costs, call center operations, warehousing and inventory. Client, a mega-PE firm, won this hotly-contested auction. After deal closure, helped management team capture identified opportunities.
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Standalone and Synergistic Cost Savings Opportunities at Consumer Goods Company
In an auction situation, conducted Operational Due Diligence to identify EBITDA and working capital opportunities for a company with China sourcing, domestic manufacturing, and both mass-merchandiser and specialty retailer distribution. Enabled auction win with identified savings of $4-11MM in EBITDA and $13-23MM in working capital.
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