Project Description
Background
A retail conglomerate who’s brands are world-renowned; they are household names. They are primarily known for the lingerie, personal care, beauty products, and accessories. The company operates more than 3,000 company-owned specialty stores in the USA, Canada, the UK and Greater China. It’s brands are also sold in more than 700 franchised locations worldwide.
Client Expectations
Standardize and centralize Relocation Services that was previously decentralized and inconsistently operated in over a dozen brands
The program was outsourced to a major provider who handled all of their own contractual relationships for; the movement of household goods, temporary accommodations, and real estate services
Although bench-marked policies were in place, department heads approved >$500K/year in exceptions to the generous policies
Project Scope
Application: 5 different Company success stories
Category:Shipping Boxes & Pizza Boxes
Scope: Combined $140 million in Spend
Process
Several competitive sourcing events were conducted in the categories of; movement of household goods, temporary accommodations, and real estate services
Policies were collectively reviewed and benchmark separately for domestic and international relocations
Insurance policies were also reviewed
Results
The outsourcing agency was required to use the retailer’s suppliers in lieu of their own. Savings exceeded 10% and hit $450K/year
A 3rd Party insurance provider was found to be redundant and terminated, Saving was approximately $100K/year
Although arguably a savings but at least a significant cost avoidance, was the approval process for exceptions to policy. Exceptions to an already very generous policy were considered verboten. Cost avoidance was >$500K.
Thought Leaders
Sower & Associates has experience assisting clients in businesses as diverse as: oil & gas, retail, food service, injection molding, industrial coatings, plywood manufacturing, hospitals, county government, package delivery, insurance, industrial machinery, and universities. These case studies demonstrate how we adapt our unique blend of skill sets to so many different industries.
Wide Range of Services
Our consulting services are wide reaching and include: cost management model creation, cost model training, strategic sourcing project execution and training, logistical design, statistical process control training and implementation, training in approaches to problem solving, training and assistance in continuous quality improvement and total quality management programs, evaluation of customer satisfaction, innovation management, change management, and curriculum design.