Global Procurement Optimization Initiative

Under pressure from both competitors and investors to cut costs, the client turned to LVP Consulting to consolidate transportation needs across a fragmented organization and optimize more than $250 million in spending across five modes.

The LVP team reviewed the client’s shipping patterns, service needs, and possible savings across more than 270 shipping sites.

• Held interviews with cross-functional groups and facility managers, collecting detailed data to evaluate costs and workflows.
• Found areas to collaborate with suppliers for overall cost reductions.
• Noted the importance of skill-specific training and laid out a project roadmap and timeline to build the sourcing team.

To drive overall cost reduction, LVP Consulting launched a global Strategic Sourcing initiative focused on the client’s $250M+ transportation expenses across Air, Ocean LCL, Ocean FCL, International Parcel, Truckload, and Less-than-Truckload.

• Compiled data on 800,000+ shipments covering around 55,000 active lanes.
• Engaged more than 1,000 shipping vendors worldwide across all transport modes.
• Built a digital quoting platform to issue a multi-modal, multi-regional RFQ.
• Outlined and refined category-specific terms for negotiation.

Savings were achieved through supplier base consolidation and enhanced alliance management practices.

• Delivered $37.3 million in annual savings on quoted shipping lanes.
• Unlocked an additional $20.3 million in savings across the remaining 49% of global spend.
• Improved annual free cash flow by $1.2 million through optimized payment terms.
• Cut the supplier base by more than 90%.
• Established a geographic framework for managing future acquisitions and divestitures.
• Created a pricing model to forecast costs for upcoming shipping routes.