Global Consumer Electronics company realizes average savings between 20% - 25% over last year prices with 14% Incremental savings opportunity by improving Supply Chain Performance and elevating strategic capabilities for long term growth & success

​

Background Scope

• Challenges in price discovery for indirect spend categories especially those where the specifications needed to be customized

• Multiple user departments involved in carrying out the procurement separately

• Items having different specifications and no leverage in volumes, due to involvement of different departments

• Repetitiveness in ordering same kind of material required by different departments

• Specifications undefined for a lot of the items procured as these were usually procured based on last year samples or samples from the market/ suppliers

• Benchmarking the products was impossible due to variances in the brands/makes/types, despite defining the specifications

• Only a handful of supplier/ vendors who were developed or given work orders, since the user departments were involved in the entire procurement process

 

We carried out the following activities :

• Consolidation of vendors, according to categories, across departments

• Definition of specifications for materials procured

• Addition of new vendors to existing vendor base

• Creation of standardized RFP/RFQ format across categories

• Price benchmarking on the basis of last year price and available market price

• Quote analysis for arriving at negotiations pointers

 

Realized average cost savings of 20 %- 25% over last year prices,

with 14% Incremental savings opportunity, 

through Strategic Sourcing

​