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Corporate Case Studies
Case Study 1 - Spend Visibility for a Media Company
The CFO of a $4B media company was seeking to capture significant cost savings by increasing control of the enterprise's $2B of purchasing spend across four autonomous business units. We worked with the CPO of the company to conduct a spend analysis, and identified national contracting opportunities for paper, packaging, telecommunications, personal computers and contract labor worth a total of over $100 million in annual savings. For each of these categories there had previously been no knowledge of combined spend for the four business units and in two of them - paper and telecommunications - one supplier was servicing all four business units under separate pricing agreements. None of the national contracts would have been possible without the intelligence of total enterprise spend provided by the spend analysis.
Case Study 2 - Sourcing Strategy for Power Generation Company
A $2B manufacturer of custom power generation systems had been suffering from both falling sales and increased production costs. We found that the root causes of both problems were ineffective sourcing strategies. Falling sales were traced to persistent quality problems caused by the selection of a non-ISO9000 supplier for a critical sub-assembly. This supplier had been selected following an RFQ process based predominantly on price. High production costs were found to be due to a proliferation of specifications for purchased parts across products which were limiting the ability of the company to leverage its purchasing power with industrial distributors. We helped the company select a strategic supplier for the critical sub-assembly based on total cost of ownership (including quality), and also assisted in reducing part numbers by 300% which led to a national contract with a major industrial distributor that created over 20% in cost savings.
Case Study 3 - Supply Chain Optimization for a Food Manufacturer
We worked with the VP of Supply Chain for a large food manufacturer to conduct an assessment with the objective of identifying opportunities for improving customer service and reducing total supply chain costs. The assessment identified opportunities to significantly improve supply management processes and performance for ingredients vendors and transportation providers A best-in-class approach was used to focus attention and investment dollars on those procurement relationships and capabilities required to deliver the value creation opportunities identified in the assessment. Following the assessment we supported the VP of Supply Chain was successful in developing the business case required to secure funding for a supply chain improvement initiative and securing funding for, and implementing, the majority of the identified initiatives. Achieved on-time order fill of 98.5% exceeded target and over $150 million of supply chain cost savings were realized, representing an ROI of over 800% on the new supply chain investments.
Case Study 4 – COGS Review and Optimization for an Audio-Visual Company
We worked with the CFO of a leading audio visual integrator to analyze and reduce over $200M in COGS expenses. A detailed SKU level analysis was conducted to identify SKU and supplier fragmentation by spend category and identify opportunities for improvement. Next, key stakeholders were engaged as part of our collaborative approach to supplier sourcing, and with their inputs, we incorporated technical and customer requirements in our bid materials. The actual sourcing efforts utilized a tailored approach by category including a focus on supply base rationalization, SKU consolidation, supplier pricing and discount program optimization, high-usage item price list optimization, evaluation and selection of direct OEM vs. distribution based strategies, and analysis of lowest cost options for inbound freight expenses associated with these purchases. Our work resulted in several millions in COGS expenditures reduction contributing directly to improvement in gross margins.
Case Study 5 – Implementation of a New Procurement Organization for $3B National Retailer
We worked with the CFO and CPO of a leading national retailer to implement and support the operation of a new indirect procurement organization. In addition to helping define the retailer's procurement strategy and charter we assisted in procurement capability development through formal training on strategic sourcing best practices, on-the-job knowledge transfer, and development of a comprehensive online procurement toolkit that included templates and tools for RFPs, contracts, service agreements, purchase orders, negotiation scripts, project tracking, SLAs, performance metrics, and many others. We also conducted a spend analysis and opportunity assessment that was used to develop a comprehensive sourcing roadmap for all previously unmanaged indirect spend. Following the development of the roadmap we delivered over $11 million in hard dollar cost savings through the strategic sourcing of multiple spend categories including insurance brokerage services, commercial print, telecom services, and IT maintenance services.
The CFO of a $4B media company was seeking to capture significant cost savings by increasing control of the enterprise's $2B of purchasing spend across four autonomous business units. We worked with the CPO of the company to conduct a spend analysis, and identified national contracting opportunities for paper, packaging, telecommunications, personal computers and contract labor worth a total of over $100 million in annual savings. For each of these categories there had previously been no knowledge of combined spend for the four business units and in two of them - paper and telecommunications - one supplier was servicing all four business units under separate pricing agreements. None of the national contracts would have been possible without the intelligence of total enterprise spend provided by the spend analysis.
Case Study 2 - Sourcing Strategy for Power Generation Company
A $2B manufacturer of custom power generation systems had been suffering from both falling sales and increased production costs. We found that the root causes of both problems were ineffective sourcing strategies. Falling sales were traced to persistent quality problems caused by the selection of a non-ISO9000 supplier for a critical sub-assembly. This supplier had been selected following an RFQ process based predominantly on price. High production costs were found to be due to a proliferation of specifications for purchased parts across products which were limiting the ability of the company to leverage its purchasing power with industrial distributors. We helped the company select a strategic supplier for the critical sub-assembly based on total cost of ownership (including quality), and also assisted in reducing part numbers by 300% which led to a national contract with a major industrial distributor that created over 20% in cost savings.
Case Study 3 - Supply Chain Optimization for a Food Manufacturer
We worked with the VP of Supply Chain for a large food manufacturer to conduct an assessment with the objective of identifying opportunities for improving customer service and reducing total supply chain costs. The assessment identified opportunities to significantly improve supply management processes and performance for ingredients vendors and transportation providers A best-in-class approach was used to focus attention and investment dollars on those procurement relationships and capabilities required to deliver the value creation opportunities identified in the assessment. Following the assessment we supported the VP of Supply Chain was successful in developing the business case required to secure funding for a supply chain improvement initiative and securing funding for, and implementing, the majority of the identified initiatives. Achieved on-time order fill of 98.5% exceeded target and over $150 million of supply chain cost savings were realized, representing an ROI of over 800% on the new supply chain investments.
Case Study 4 – COGS Review and Optimization for an Audio-Visual Company
We worked with the CFO of a leading audio visual integrator to analyze and reduce over $200M in COGS expenses. A detailed SKU level analysis was conducted to identify SKU and supplier fragmentation by spend category and identify opportunities for improvement. Next, key stakeholders were engaged as part of our collaborative approach to supplier sourcing, and with their inputs, we incorporated technical and customer requirements in our bid materials. The actual sourcing efforts utilized a tailored approach by category including a focus on supply base rationalization, SKU consolidation, supplier pricing and discount program optimization, high-usage item price list optimization, evaluation and selection of direct OEM vs. distribution based strategies, and analysis of lowest cost options for inbound freight expenses associated with these purchases. Our work resulted in several millions in COGS expenditures reduction contributing directly to improvement in gross margins.
Case Study 5 – Implementation of a New Procurement Organization for $3B National Retailer
We worked with the CFO and CPO of a leading national retailer to implement and support the operation of a new indirect procurement organization. In addition to helping define the retailer's procurement strategy and charter we assisted in procurement capability development through formal training on strategic sourcing best practices, on-the-job knowledge transfer, and development of a comprehensive online procurement toolkit that included templates and tools for RFPs, contracts, service agreements, purchase orders, negotiation scripts, project tracking, SLAs, performance metrics, and many others. We also conducted a spend analysis and opportunity assessment that was used to develop a comprehensive sourcing roadmap for all previously unmanaged indirect spend. Following the development of the roadmap we delivered over $11 million in hard dollar cost savings through the strategic sourcing of multiple spend categories including insurance brokerage services, commercial print, telecom services, and IT maintenance services.
Private Equity Case Studies
Case Study 1 – Implementation of a Cross-Portfolio Procurement Program for a Mid-Market PE firm
We worked with senior operating partners at this PE firm to design, develop and implement a cross-portfolio procurement program encompassing over 15 portfolio companies. Categories addressed included IT Hardware, Travel, Telecommunications, Temporary Labor, MRO, Office Supplies, Small Parcel, and Print. We managed the implementation process across the entire portfolio of companies and also provided ongoing savings and compliance monitoring to ensure rapid adoption of the contracts and realization of cost savings.
Case Study 2 – Enhancing Operating Value at Select Portfolio Companies for a Leading PE Firm
We are currently engaged with several portfolio companies of a leading PE firm. We are working with each of the individual portfolio companies to identify and create cost savings in a broad range of spend categories including Office Supplies, Commercial Print, IT Hardware, Real Estate Leases, Small Parcel, LTL and TL Freight, Packaging, Telecom, Temporary Labor, Travel, and Utilities. Our work to date has created approximately $42M in enhanced operating value for the portfolio companies.
Case Study 3 – Developing a Cross-Portfolio Program for a Top 5 PE Firm
We worked with the Operating Team at this PE firm to help design and implement a program for cross-portfolio purchases across several of their companies. Initial spend categories included within the scope of the program included Office Supplies, Print, and Temporary Labor. We have also worked with other companies within this PE firm’s portfolio to provide telecom cost reduction services for wireless, voice & data, local and hosting.
Case Study 4 – Cross Portfolio Spend Visibility for a Leading PE Firm
We worked with this PE firm to design and implement an on-demand spend analysis solution that provides visibility into portfolio wide spending in both direct and indirect categories. This highly customizable solution allows for participating companies and the PE firm to analyze spending patterns and trends across all direct and indirect categories. The solution also enables improved utilization of current cross portfolio contracts through the reporting of compliance by company and category. The solution also enables rapid targeting and prioritization of new opportunities to create leveraged cross-portfolio contracts.
Case Study 5 – Pre-Exit Value Maximization for a PE Portfolio Company
We worked with a large portfolio company of this PE firm to rapidly reduce SG&A expenses prior to sale. Utilizing a combination of spend analysis and contract benchmarking we quickly identified and prioritized category-specific opportunities for the expedient creation of hard cost savings. Following the development of a savings roadmap we leveraged pre-negotiated contracts, incumbent negotiations, demand management and specification optimization to rapidly and efficiently generate over $25M in enterprise value.
We worked with senior operating partners at this PE firm to design, develop and implement a cross-portfolio procurement program encompassing over 15 portfolio companies. Categories addressed included IT Hardware, Travel, Telecommunications, Temporary Labor, MRO, Office Supplies, Small Parcel, and Print. We managed the implementation process across the entire portfolio of companies and also provided ongoing savings and compliance monitoring to ensure rapid adoption of the contracts and realization of cost savings.
Case Study 2 – Enhancing Operating Value at Select Portfolio Companies for a Leading PE Firm
We are currently engaged with several portfolio companies of a leading PE firm. We are working with each of the individual portfolio companies to identify and create cost savings in a broad range of spend categories including Office Supplies, Commercial Print, IT Hardware, Real Estate Leases, Small Parcel, LTL and TL Freight, Packaging, Telecom, Temporary Labor, Travel, and Utilities. Our work to date has created approximately $42M in enhanced operating value for the portfolio companies.
Case Study 3 – Developing a Cross-Portfolio Program for a Top 5 PE Firm
We worked with the Operating Team at this PE firm to help design and implement a program for cross-portfolio purchases across several of their companies. Initial spend categories included within the scope of the program included Office Supplies, Print, and Temporary Labor. We have also worked with other companies within this PE firm’s portfolio to provide telecom cost reduction services for wireless, voice & data, local and hosting.
Case Study 4 – Cross Portfolio Spend Visibility for a Leading PE Firm
We worked with this PE firm to design and implement an on-demand spend analysis solution that provides visibility into portfolio wide spending in both direct and indirect categories. This highly customizable solution allows for participating companies and the PE firm to analyze spending patterns and trends across all direct and indirect categories. The solution also enables improved utilization of current cross portfolio contracts through the reporting of compliance by company and category. The solution also enables rapid targeting and prioritization of new opportunities to create leveraged cross-portfolio contracts.
Case Study 5 – Pre-Exit Value Maximization for a PE Portfolio Company
We worked with a large portfolio company of this PE firm to rapidly reduce SG&A expenses prior to sale. Utilizing a combination of spend analysis and contract benchmarking we quickly identified and prioritized category-specific opportunities for the expedient creation of hard cost savings. Following the development of a savings roadmap we leveraged pre-negotiated contracts, incumbent negotiations, demand management and specification optimization to rapidly and efficiently generate over $25M in enterprise value.
Public Sector Case Studies
Case Study 1 – Procurement Transformation for a Southwestern State
We worked with senior management at the Department of Central Services at this state to execute a comprehensive strategic sourcing and procurement transformation project. Key elements included spend analysis, profiling and assessment for over 20 categories, and development and implementation of a strategic sourcing roadmap to create tens of millions in statewide savings. The project also included an in-depth assessment of the procurement organization, procurement code, and current procurement practices. We developed and helped implement recommendations for transformative change including realigning the procurement organization, developing a new procurement charter, implementing best-in-class procurement practices and imparting procurement knowledge transfer to develop internal procurement skills and capabilities. Our project created over $31 million in contract length savings for the State.
Case Study 2 – Spend Analysis and Procurement Assessment for a Western State
We conducted an assessment of the State procurement organization and practices with the goal of identifying opportunities to implement a procurement model reflective of public and private sector best practices. We, in collaboration with the State, developed a “to-be” vision for the procurement department along with an organizational model and supporting processes. We also completed a comprehensive spend analysis (A/P and P-Card) for the State and Higher Education in order to develop a strategic sourcing roadmap identifying over $15M in annual cost savings opportunities.
Case Study 3 – Alternative Procurement Funding Model Study for Western State
We conducted a study to review alternative procurement funding models for this western state. We conducted a comprehensive exercise to review and benchmark funding mechanisms in use by other states and developed recommendations to optimize our client state’s current funding model with identification of benefits including increased flexibility to pursue adoption of best-in-class tools and strategies such as e-procurement or even targeted procurement outsourcing.
Case Study 4 – E-Procurement Solution Procurement for Large Multi-State Consortium
We led a multi-state e-Procurement solution vendor selection effort for a leading consortium of western states. The project included vendor and technology review, requirements gathering, functional requirements definition, documentation of participating states’ business processes, development of a best-in-class RFP, proposal evaluation and vendor negotiations support, and post-award implementation support.
Case Study 5 – Increasing Contracting Organization Effectiveness for a State Department of Transportation
We led a procurement transformation effort for a Western State’s Department of Transportation. We began by conducting a rigorous assessment of the DOT’s contracting organization along the dimensions of people, process, technology, and strategy. Our team engaged in comprehensive document review and extensive stakeholder interviews. Following a successful organizational assessment, we were engaged to redesign the DOT’s contracting processes and organization Utilizing a collaborative, iterative process, we worked with our client to reengineer an overly complex contracting process in a way that addressed existing challenges while dramatically streamlining and standardizing. Drawing upon our extensive public sector procurement expertise, we worked client with our client to help implement lasting change within their procurement organization and approach.
Case Study 6 – Maximizing Procurement Effectiveness for State Health Agency
We worked with a Western state government’s Medicaid agency to assist them in their efforts to improve the quality of their professional services competitive bidding efforts. Specifically, our client’s organization had historically dealt with vendor protests on a regular basis, and the development of accountability focused contracts had not been a priority. We engaged in a comprehensive review of an RFP of strategic importance, identifying improvements that would help minimize protest risk, create incentives for high vendor performance, and ensure that the state Medicaid agency had recourse if faced with vendor non-performance issues. Further, we developed RFP response templates that would enable ease of proposal evaluation while setting the stage for data-driven vendor negotiations prior to contract award.
We worked with senior management at the Department of Central Services at this state to execute a comprehensive strategic sourcing and procurement transformation project. Key elements included spend analysis, profiling and assessment for over 20 categories, and development and implementation of a strategic sourcing roadmap to create tens of millions in statewide savings. The project also included an in-depth assessment of the procurement organization, procurement code, and current procurement practices. We developed and helped implement recommendations for transformative change including realigning the procurement organization, developing a new procurement charter, implementing best-in-class procurement practices and imparting procurement knowledge transfer to develop internal procurement skills and capabilities. Our project created over $31 million in contract length savings for the State.
Case Study 2 – Spend Analysis and Procurement Assessment for a Western State
We conducted an assessment of the State procurement organization and practices with the goal of identifying opportunities to implement a procurement model reflective of public and private sector best practices. We, in collaboration with the State, developed a “to-be” vision for the procurement department along with an organizational model and supporting processes. We also completed a comprehensive spend analysis (A/P and P-Card) for the State and Higher Education in order to develop a strategic sourcing roadmap identifying over $15M in annual cost savings opportunities.
Case Study 3 – Alternative Procurement Funding Model Study for Western State
We conducted a study to review alternative procurement funding models for this western state. We conducted a comprehensive exercise to review and benchmark funding mechanisms in use by other states and developed recommendations to optimize our client state’s current funding model with identification of benefits including increased flexibility to pursue adoption of best-in-class tools and strategies such as e-procurement or even targeted procurement outsourcing.
Case Study 4 – E-Procurement Solution Procurement for Large Multi-State Consortium
We led a multi-state e-Procurement solution vendor selection effort for a leading consortium of western states. The project included vendor and technology review, requirements gathering, functional requirements definition, documentation of participating states’ business processes, development of a best-in-class RFP, proposal evaluation and vendor negotiations support, and post-award implementation support.
Case Study 5 – Increasing Contracting Organization Effectiveness for a State Department of Transportation
We led a procurement transformation effort for a Western State’s Department of Transportation. We began by conducting a rigorous assessment of the DOT’s contracting organization along the dimensions of people, process, technology, and strategy. Our team engaged in comprehensive document review and extensive stakeholder interviews. Following a successful organizational assessment, we were engaged to redesign the DOT’s contracting processes and organization Utilizing a collaborative, iterative process, we worked with our client to reengineer an overly complex contracting process in a way that addressed existing challenges while dramatically streamlining and standardizing. Drawing upon our extensive public sector procurement expertise, we worked client with our client to help implement lasting change within their procurement organization and approach.
Case Study 6 – Maximizing Procurement Effectiveness for State Health Agency
We worked with a Western state government’s Medicaid agency to assist them in their efforts to improve the quality of their professional services competitive bidding efforts. Specifically, our client’s organization had historically dealt with vendor protests on a regular basis, and the development of accountability focused contracts had not been a priority. We engaged in a comprehensive review of an RFP of strategic importance, identifying improvements that would help minimize protest risk, create incentives for high vendor performance, and ensure that the state Medicaid agency had recourse if faced with vendor non-performance issues. Further, we developed RFP response templates that would enable ease of proposal evaluation while setting the stage for data-driven vendor negotiations prior to contract award.
