Purchasing Cost Reduction and Strategic Sourcing

Case Study: how to make the Supply Base more competitive through Strategic Sourcing, cost reduction, and structured procurement management.

Industry
Procurement

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The Context

Transforming Procurement into a Competitive Lever

A company specializing in the design and manufacture of plastic recycling plants needed to gain in-depth knowledge of its Supply Base to evaluate its actual competitiveness relative to the market. The objective was to identify cost reduction opportunities in categories with the greatest economic impact, structure supplier management, and define a shared, clear, and sustainable long-term purchasing strategy. To achieve these goals, it was necessary to understand spend distribution, identify the most relevant categories, evaluate supplier alignment with business needs, and verify the existence of more competitive market alternatives.

The Project

Greater Knowledge of the Supply Base and Saving Opportunities

The project enabled the analysis of spend, suppliers, and purchasing categories to build a structured sourcing strategy.

Client Industry

Manufacturer of plastic recycling plants.
Initial Situation

Need to gain greater visibility into spend, suppliers, and Supply Base competitiveness.
Critical Issues Identified

Evaluating supplier alignment with business needs and the market.
Project Objectives

Identify saving opportunities and define a sustainable sourcing strategy.

Solution

Spend Analysis, Benchmarking, and Sourcing Strategy

We developed a complete and structured view of the purchasing scope through a spend and Supply Base analysis process. The intervention allowed for the identification of the most relevant product categories, an understanding of where spend was concentrated, and an evaluation of supplier competitiveness relative to the market. The analysis was supported by market benchmarking activities to identify concrete cost reduction opportunities and define realistic saving targets. Based on the evidence, we built a Strategic Sourcing strategy shared with the client, accompanied by an action plan aimed at rationalizing the Supply Base, identifying preferred suppliers, and creating a structured management model that is replicable and sustainable over time.

Project Phases