Project Description
Background
The client budgeted $100MM in annual spend for Inline Inspection Services. Using both EMAT and MFL technologies. Historically, the work was awarded annually without regard for volume aggregation, long term cash flow or price adjustment mechanism to control future cost. No long term strategy or visibility into future volumes for suppliers.
Client Expectations
Reduce risk, increase government compliance and perform the work efficiently to improve revenue
Leverage spend and volume to garner increased discounts
Gain assurance commercial agreements were cost competitive and sustainable
Improve technology and reduce impact of digs and total cost of ownership
Project Scope
One of the Largest NA Midstream Companies, Work Distributed Amongst Unique Business Units in Canada, US and Mexico. $100 MM in Annual Spend.
Results
Established a should cost model demonstrating a minimum gross profit margin of 29%
Found labor and equipment pricing to be inflated as much as 300%
Improved KPIs and Price Adjustment Mechanisms to ensure sustained value over the life of the contract
Team developed the experience and repeatable processes to carry out in future sourcing events and negotiations
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.