Project Description
Background
This large pipeline company had over $60MM in annual spend on both Cathodic Protection and Survey work. The spend was dispersed through over 20 different service companies with no aggregation of volume or overarching strategy
Client Expectations
Consolidate supply base and develop a true Supplier Relationship Management (SRM) system
Achieve price savings through a structure RFP process
Develop KPIs and Price Adjustment Mechanisms (PAM) to ensure maintenance over the lifetime of the contract
Guarantee continuity of supply for their preferred assets
Mentor, train and develop their team to carry one the process and management into the future
Project Scope
One of the Largest NA Midstream Companies, Work was spread out among 13 unique business units. $60 MM in Annual Spend.
Results
Achieved a 16% reduction in cost year over year through a competitive RFP process
Consolidate volumes into 4 key suppliers ensuring continuity of supply and strategic alignment with key vendors
KPIs and PAMs were developed and in place to ensure value is maintained over the life of the contract
Team developed the experience and process to continue to process repeat it
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.