Insight Sourcing Group: Strategic Sourcing & Procurement Services in Atlanta, GA


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Client Results: Strategic Sourcing Case Studies

Click on the links below to see a one-page overview of the Client Results. See Client Results Summaries for
specific Categories in the lower half of this table.

DETAILED CASE STUDIES
Category / Service Savings % Client Notes
Private Equity Cross-Portfolio Spend Aggregation Average 21% Private Equity- Multi-Billion Dollar Portfolio A private equity firm with fourteen holdings engaged ISG to explore cross-portfolio procurement aggregation opportunities.  ISG partnered with portfolio CFOs to deliver 16 consolidated contracts and well over $75 million in valuation improvement.  View Details >>
Assessment, Enterprise Earnings Optimization, & LCC Sourcing On-going $500 Million Manufacturer (Private Equity Owned) ISG performed an extensive global cost and operations assessment.  The team recommended the creation of a global procurement organization and identified $24 million in savings opportunities.  The execution phase is on-going.  View Details >>
Assessment & Enterprise Earnings Optimization Average 34% $2.5 Billion Financial Services Company A global financial services firm recognized procurement as a strategic tool for earnings improvement.  ISG delivered over $10 million in annual, recurring cost savings, and a series of process improvements.  The project's ROI exceeded 850%. 
View Details >>
Enterprise Earnings Optimization Average 24% $250 Million Commercial Services Company A client with a high rate of acquisitions sought to optimize procurement across 120 locations.  ISG executed a series of projects to deliver a 15% EBITDA improvement and a tremendous increase in financial control while helping to develop a procurement competency in-house. 
View Details >>
Low Cost Country Sourcing: Machined Aluminum Castings 24% $1 Billion Automotive Supplier A manufacturer needed cost reduction to remain competitive.  A global search discovered and qualified a South Korean supplier for the highly complex parts.  View Details >>
Procure-to-Pay Process Transformation & Org Design   $250 Million Entertainment Company A theme park operator with multiple locations sought to move procurement from tactical to strategic.  ISG designed and built a center-led procurement organization and helped develop the staff.  View Details >>
Make or Buy: Fulfillment Operations 20+% $50 Million Apparel Manufacturer A manufacturer’s rapid growth began to stress its internal fulfillment and distribution operations.  They hired ISG to explore both outsourced logistics solutions (3PL) and internal improvement opportunities in parallel.  View Details >>
 
CLIENT RESULTS SUMMARIES
Category / Service Savings % Client Notes
Office Supplies Consortium 26% Multiple Leveraging the ISG Office Supplies Consortium, ISG has saved an average of 26% on over $10 million in spend across multiple clients. 
Small Package Shipping Sourcing 17% Multiple Recently, ISG has sourced over $30 million in spend across multiple clients yielding an average savings over 17% and significant process improvements. 
Steel 9% Publicly Traded Holding Company Consolidated steel buys across multiple manufacturing holdings to reduce total cost on over $100 million in spend by 9%. 
Drug Testing & Background Checks 25% Fast-growing $140 Million Services Company In addition to savings, ISG significantly improved processes and turnaround time for drug testing and critical background checks for a fast-growing company with over 5,000 employees.
Plastic Bins 28% $250 Million Commercial Services Company ISG explored global and domestic sources for an annual purchase of over 25,000 wheeled carts.  Aesthetics was a major client concern and ISG explored custom design options for rotational and injection molded solutions.  In the end, ISG negotiated substantial savings with a domestic supplier plus bi-coastal safety stocks and great payment terms.
Truckload Freight 12% $120 Million Manufacturer Negotiated rates and equipment commitments for Van and Flatbed freight with a preferred set of carriers.  In addition to improving rates, ISG successfully negotiated increased commitments for busy summer season. 
LTL Freight 16% Private Equity- Multi-Billion Dollar Portfolio Led a competitive RFP for four holdings and developed a core LTL carrier program for each holding.Generated 16% savings, predominantly from incumbent carriers. 
Telecom: Voice & Data +30% $30 Billion Asset Bank & Financial Services Company Saved over $3 million annually and $10 cumulatively.  Benchmarked the wide area network and negotiated new agreements for the entire bank system.  Inventoried and sourced all voice services.  Developed a wireless strategy and negotiated services.  Actively manage wireline and wireless inventory, change management, and bill administration today.
Chicken & Desserts 9% $250 Million Entertainment Company Sourced a wide array of Chicken parts and Desserts for an operator of multiple theme parks.  Led a Food Show to allow product by product comparisons.  Successfully negotiated directly with manufacturers in a time of rising costs.
Travel Program 36% $1.5 Billion Services Company ISG reduced Travel Agency costs by 36% through Strategic Sourcing and by redesigning the way the agency was paid.  ISG also created a 'decision matrix' to facilitate the design of a new travel policy showing: current state, best practice, and our recommendations for change.  Executives were able to determine how much change they wanted to introduce.  The project resulted in a reduction in average ticket price of over 10%.
Temp Labor 33% $250 Million Commercial Services Company ISG consolidated Temp Labor spend for a $250 million commercial services company across 120 locations.  In addition to decreasing the mark-up by 33%, the client benefited from a conversion of many paper invoices to one electronic invoice per month and the ability to enforce HR and risk management policies consistently across the country. 
Corrugated 30% Small Food Manufacturer Our client's biggest customer allowed them to use its corrugated contract which was supposed to reflect Fortune 500 pricing.  ISG performed competitive sourcing and the client changed a long time supplier yielding 30% savings.  The project had a material impact on EBITDA.
Low Cost Country:
Paperboard
17% Mid-sized Producer of Beverage Packaging Developed a secondary source of supply out of Brazil, successfully navigating wet strength tests and meeting demanding quality and end customer requirements.  Savings reflect additional freight and warehouse costs.
Uniforms 22% Fast Food Chain with 1,200 locations Facilitated a competitive RFP and aggressively negotiated over 20% savings with an incumbent supplier.  Eliminated some service fees and negotiated an out from the contract should the Uniforms program undergo a design change. 
IT Hardware & Software 15% / 21% Private Equity- Multi-Billion Dollar Portfolio Developed an Umbrella agreement for IT Hardware and services that provided 15% savings, improved warranty conditions, enhanced service levels, and offered superior reporting.  Also consolidated IT SW expenditures to drive 20%+ cost savings. 
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