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Cases) Best global spend management/strategic sourcing/SCM realization

Below are some of our client cases of best global spend management / strategic sourcing / procurement realizations. Please click the titles of the cases to see overviews of the cases.

Creating to-be process of sourcing and procurement of building materials for stores - Global restaurant chain

Client) Global restaurant chain
Spend categories) Indirect: Interiors and exteriors for stores
Issues)
 →Cost reductions
 →The number of supplied materials was large, and it took a lot of man-hours to pick up the quantities, place orders, and manage the deliveries
 →Spend histories of the items procured by the construction companies was not known
Our tasks)
 →Creating to-be sourcing and procurement process and system infrastructure for new / repair store building materials
 →Organized operation processes and led to the way for outsourcing

Opportunity identification in sourcing of store IT・Digital equipment – Global restaurant chain

Client) Global restaurant chain
Spend categories) Indirect: Store IT・Digital equipment and installation works
Issues)
 →Increasing investments to these categories due to adopting IT and digitization of its store operations
 →Cost reductions
 →Because the scoped categories had been regarded as areas that requires specialized knowledge within the client, sourcing of them had been left to the department in charge, and the selection of equipment and suppliers had become black boxes
Our tasks)
 →Diagnosis of current equipment / supplier selection processes
 →Identification of improvement opportunities
 →5-15% / USD0.6-1.75mil annual cost reductions opportunity in the scoped sourcing process was identified

Identifying cost reduction opportunities by spending analysis and creating plans for reaping them - Pharmaceutical manufacturer

Client) Pharmaceutical manufacturer
Spend categories) Indirect: advertising printing, vehicle management such as auto leasing, temporary staffs, courier services, janitorial works / repairs, education and training services, etc.
Issues)
 →Cost reductions
 →There was no dedicated sourcing staff for indirect spends, and there was a lack of know-how for excavating cost reduction opportunities and reaping the excavated opportunities
Our tasks)
 →Extraction of cost reduction opportunities for service-related indirect spends such as business consignments by spend analysis
 →Creating plans for reaping cost reduction opportunities
 →Extract cost reduction opportunities in auto leasing, vehicle management, advertising printings, temporary staffs, courier services, janitorial works, repairs, education and training services, and presented plans for realizing them
 →The extracted cost reduction opportunities were more than USD 5 million per year even in a realistic scenario

Defining processes and preparation of procedure manuals for budgeting purchase application, sourcing, ordering, acceptance, and payment - Oil development company

Client) Oil development company
Spend categories) Direct: Exploration / excavation work, etc.
Scope) Budgeting and budget management - approvals - purchase application -sourcing - biding - order - acceptance – payment
Issues)
The client had acquired an overseas company and made it a subsidiary. Though the client had wanted to establish governance of the newly acquired foreign subsidiary, she did not have documentation of operations from budgeting to purchase application, sourcing, ordering, acceptance, nor payment, and wanted to define and to document these procedures
Our tasks)
 →Define the procedures of the scoped business processes
 →Incorporate the defined procedures into the business procedure manuals

Evaluations of raw material sourcing strategy, process, incumbent suppliers, and identifying improvement opportunities - Soft drink manufacturer

Client) Soft drink manufacturer
Spend categories) Direct: tea leaves, coffee beans, fruit juices
Issues)
 →Cost reductions
 →By showing the souring staffs the improvement opportunities, the staff will be aware of and improve their levels
Our tasks)
 →Diagnosis, evaluation of, and identifying improvement opportunities in sourcing strategies / processes / incumbent suppliers for raw materials
 →Diagnosing down to the cost detail levels and identifying improvement opportunities in which material categories and how to realize them
 →Customer-recognized cost reduction opportunities had exceed 10%

Identifying cost reduction opportunities in direct materials - Daily necessities manufacturer

Client) Daily necessities manufacturer
Spend categories) Direct: Raw materials, packaging materials
Issues)
 →Cost reductions
 →Unknown where there were cost reduction opportunities
Our tasks)
 →Spend analysis / diagnosis and evaluation of sourcing process / identification of improvement opportunities
 →The client was considering cost reductions through negotiations with incumbent suppliers for raw materials and packaging materials, but clarified that the issue had lain in the product development process and led the way to promote engineering buys

Production-Inventory-Logistics optimization consulting - SCM company of a soft drink manufacturing group

Client) SCM company of a soft drink manufacturing group
Scope) Weekly production-inventory-logistics allocation plan
Issues)
 →Cost reductions
 →Those planning were done manually based on the experiences and intuitions of the person in charge, and it was unknown whether the plan was cost-optimal
 →It took a lot of man-hours and time
 →Difficult to revise the plans when trouble occurred
 →Although the client had considered solving the above issues by introducing a supply chain optimization solution, she was concerned about the effectiveness of the solution and did not proceed
Our tasks)
 →Conducting a feasibility study using a pilot model to see whether the total cost reduction was possible by optimizing the entire supply chain of production-inventory-logistics with a supply chain optimization solution
 →Project management including the overseas solution vendor
 →Model design and development support
 →This feasibility study verified the effectiveness of the solution, and the client had implemented the system

Development and execution of annual training program for sourcing and procurement department – Plastic product manufacturer

Client) Plastic product manufacturer
Spend categories) Direct: Raw materials, manufacturing consignment, factory consumables
Issues) In the newly established sourcing / procurement department, all members were transferred from other departments and lacked training know-how
Our tasks)
 →Developed an annual training program that mixed lectures and practical works based on the subjects that the client members had wanted to strengthen
 →Execution of training based on the annual training program

Please contact us, if you have any questions or inquiries on our best global spend management/strategic sourcing/SCM realization services.

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