Consulting case studies

Sourcing as strategy

A manufacturing firm with $18b in revenues transformed its procurement process, putting themselves on track to save $500m at the same time. 

"Where procurement had been simply a cost of doing business, this manufacturing company now recognizes that it can be a strategic weapon..."

Client challenge

To implement a strategic sourcing initiative:

  • Achieve significant savings in commodities procurement
  • Leverage sourcing for strategic gains in innovation and growth
  • Institutionalize organizational view of procurement as strategic differentiator

 

PwC's solution

Develop and build hybrid centralized procurement department

  • Hire CPO and train executives, who head strategic sourcing
  • Pilot test commodities to demonstrate savings and increase buy-in
  • Develop tools and processes to continue evolution of strategic procurement

 

Impact on client's business

  • Pilot projects have yielded $60 million in savings
  • Further $150 million in savings identified
  • Tools and processes to identify and leverage opportunities for strategic sourcing created & implemented
  • Core governance board created to promote sourcing as strategy

 

Published 8/2014


Contact us for a more in-depth conversation

Vinay Couto
Senior Partner, Chicago
Tel: +1 (312) 578 4617
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Rodger Howell
Principal, PwC's Strategy&, Chicago
Tel: +1 (312) 298 5351
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John Plansky
Senior Partner, Boston
Tel: +1 (617) 521 8801
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