Appliances Manufacturer

Sourcing Value teamed up with an Appliance Manufacturer to help assess its steel sourcing processes and ways of working, benchmark prices and identify improvement opportunities. The ultimate objective was to integrate these existing processes and ways of working within the Sourcing Value toolkit and run value chain optimization analyses, while supporting the client in running comprehensive carbon steel RFQs as well as fact-based negotiations.

Solution and Analysis Provided by Sourcing Value:

• Process, spend and pricing assessment
• Strategic sourcing priorities and risk preferences
• Value chain strategy
• Supply chain optimization analysis
• Execution of standardized, matrix-style RFQs and Fact-Based Negotiations

Results

• Immediate 6% savings on carbon steel, equivalent to 150% of the market price drop since last negotiation despite tight constraints on shifts in portfolio allocation
• Achieved high level of spend control
• Developed capabilities for efficient RFQing, price benchmarking as well as optimization and scenario analysis for portfolio and volume allocation