New sourcing plan lowers costs

Client Results Story

Opportunity
DialCo wanted to cut costs by dramatically upgrading its procurement processes. 
 

The senior management of DialCo was under pressure from Wall Street to reduce operations costs by as much as 10%.

DialCo had already taken steps to improve procurement processes and capabilities through existing initiatives such as

  • Reorganizing around commodity teams
  • Consolidating warehouses
  • Reducing excess inventory

 Management felt more work was needed, and asked Bain to help achieve two objectives:

  •  Realize significant cost savings in the short term
  •  Build world-class sourcing capabilities, integrating the procurement group and other business units

View Approach

Approach
To realize opportunities across the company's spend base, Bain worked with DialCo to establish an initiative management process and governance structure.

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View Recommendations

Recommendations
Each strategic sourcing recommendation used one or more of the following levers to increase buying power and lower costs.

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View Results

Results
DialCo set up the organizational and procedural structure to support its new approach to purchasing.

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