A global $13B diversified enterprise with top-tier positions in aerospace, automotive, and industrial sectors, producing power transmission, motion control parts, pumps, and electronic systems. procurement transformation is a key strategic priority. the company runs operations throughout the americas, asia, and eastern europe.
supply chain structure and process changes positioned our clients for lasting, repeatable success well beyond LVP’s involvement
completed 181 supplier visits and 158 negotiations, resulting in 75 strategic alliance partners chosen
With a supply base of more than 3,500 suppliers and $830M in spend across nine operating divisions, the company engaged LVP to uncover and capture supply chain savings opportunities within the industrial products division.
After pinpointing supply chain savings opportunities, lvp proposed an organizational design and structure aimed at maximizing those savings.
LVP then developed and implemented a new organizational design and structure. this involved recruiting, hiring, and training category managers, introducing best practices, and establishing a sourcing methodology. we transformed existing client category “synergy” teams into a world-class purchasing organization and created effective global supply strategies for indirect materials, components, and finished goods, tackling issues with low demand, highly engineered, and specialized products. additionally, we organized, trained, and led cross-functional procurement teams to select alliance suppliers focused on long-term improvements in cost, delivery, and service.
Besides delivering significant project savings, our client established and strengthened a process and organizational transformation that supports sustained long-term savings and overall cost reduction. our recommendations resulted in $133M (16%) savings across seven product categories, including printed materials, telecommunications, electric induction motors, injection molded plastics, ocean freight, ltl, and truckload transportation. global purchases grew by 57%, with 70% now sourced from best cost countries. finally, we conducted 181 supplier site visits (70 international, 111 north america) and 158 negotiations, culminating in the selection of 75 strategic alliance partners.
