$500 Million Global Manufacturer

Approach

ISG performed a full Spend Analysis, detailed Cost Optimization Assessment, and analyzed global procurement processes. Visiting plants in the U.S., Europe, and Asia, ISG interviewed dozens of executives and stakeholders across multiple divisions, performing extensive benchmarking and analysis in the process. ISG also partnered with a European consulting firm that brought extensive local market knowledge.

The team recommended the creation of a global sourcing organization while maintaining a local purchasing function. ISG also identified extensive near-term cost reduction opportunities and recommended multiple strategic sourcing initiatives targeting $20 million in savings.

Data driven analyses, quick hit successes, and a collaborative working style won over skeptical division leaders who eventually championed the effort. In parallel with a broad array of sourcing initiatives, ISG designed, implemented, and provided extensive training and support for the new international sourcing team.