Consolidating a 19-Supplier Network

Client Challenge

‍

A global manufacturer faced significant challenges managing the service and delivery performance of 19 suppliers of c-parts across two production sites, spanning hundreds of lines.

‍

This complexity was causing inefficiencies and consuming valuable time and resources in their procurement and finance teams.

‍

Our Solution

‍

We stepped in to streamline the manufacturer's supply chain. Our approach involved:

‍

• Consolidating suppliers: We took over the ordering and delivery responsibilities from the 19 suppliers located across 8 different countries, simplifying the process to one single point of contact.
• Centralising supplier targets: We ensured that on-time delivery and quality targets were consistently met, taking full accountability for these critical aspects.
• Unified invoicing and payment terms: Instead of managing multiple invoices with varying payment terms, we provided the manufacturer with one consolidated monthly invoice.

‍

The Results

‍

Procurement efficiency

The manufacturer’s procurement team was able to reassign their focus to higher-value parts.

‍

Financial gains

The finance team benefited from moving to a single invoice and unified payment terms, reducing the time spent on processing multiple invoices.

‍

Cost savings

The manufacturer’s internal cost-benefit analysis revealed an ongoing five-figure annual saving.

‍