For one of the recently divested mid-market chemical companies the AgroChem space, we were entrusted to drive rapid third-party spend savings across spend areas
We started with analysis and categorization of client’s spending into direct and indirect categories. Indirect categories were targeted first as the spending was largely commoditized and could be negotiated with suppliers and or tendered to obtain the best prices. Simultaneously, for direct spending, tollers and contract manufacturers were researched who could supply the same products at lower prices because they had higher purchasing power than client’s and the RMs were non-IP materials.
Within four months, several million dollars of third-party spending savings were delivered and a pipeline for several more million dollars of savings created.