Strategic Sourcing Transformation in Metals Industry

A Fortune 500 corporation procuring 350,000+ metric tons of metals annually ($400M spend) across 28 business units in 15 countries faced significant supply chain inefficiencies. With a fragmented base of 200+ suppliers, the organization needed to implement a global strategic sourcing initiative to:

• Enhance operational efficiency
• Maximize financial performance
• Accelerate product innovation
• Consolidate supplier relationships

The LVP team researched and analyzed the client’s supply base, including their diverse technical requirements, customer needs, and annual metal expenditures. The team:

• Conducted 400 interviews with professionals across functions and divisions, collecting extensive data to benchmark costs and processes.
• Identified opportunities to partner with global suppliers to gain significant operational efficiencies and cost reductions.
• Highlighted the need for targeted, skill-based training to support long-term strategic goals.

To capitalize on identified cost-saving opportunities, LVP implemented its proprietary 11-Gate Strategic Sourcing Process focused on four key metal categories: Carbon Steel, Stainless Steel, Copper, and Aluminum. The LVP team collaborated closely with more than 250 client professionals to source all metal requirements strategically. This involved negotiating with and conducting on-site visits to 65 top-tier suppliers worldwide.

• Collected and structured comprehensive technical and commercial data requirements
• Delivered over 12,000 hours of training in Process Methodology, Executive Communications, Global Negotiations, Site Assessments, and Alliance Management to empower internal teams and sustain long-term benefits
• Identified and strategically framed each negotiable issue to enable highly effective and efficient supplier negotiations

LVP was responsible for identifying, evaluating, and capturing substantial supply chain savings by training over 250 personnel, introducing a customized 11-Gate Strategic Sourcing Process, and developing benchmarking databases for the client’s supplier base. These efforts led to the formation of long-term partnerships with 27 world-class mills and service centers.

The initiative delivered over $34 million in annual cost savings and achieved a supply base reduction of more than 85%. These strategic alliances with global metal suppliers positioned the client for sustained cost reduction and enhanced supply chain performance across the enterprise.