Facilitating strategic sourcing pilot


The presenting issues for this electrical device manufacturer revolved around improving sourcing group capabilities, resolving a thorny purchasing performance issue and piloting an approach to strategic sourcing for selected spend categories. This project was sponsored by the company’s CFO, in conjunction with the CEO, the head of operations finance and the purchasing group.


  • Recommended process, metric and capability enhancements:
    • Conducted a rapid diagnostic to clarify key issues and identify possible opportunities.
    • Analyzed purchasing performance and existing performance indicators.
    • Interviewed key internal stakeholders in finance, purchasing and manufacturing.
    • Recommended changes in purchasing performance metrics.
    • Recommended organizational options for improved performance.
  • Conducted deep dives to identify sourcing opportunities:
    • Facilitated client teams to launch rapid sourcing initiatives in five areas:
      • Sourcing process: Led a sourcing process for one direct category and temp labor
      • Product for resale: Defined decision guidelines and strengthened resources
      • Asia supply chain: Recommended mode downshifting, logistics consolidation and direct importing
      • Mexico supply chain: Made the case for local sourcing and freight consolidation
      • Spend leverage: Developed a sourcing strategy for a key direct commodity
    • Identified strategic sourcing gains


  • Strengthened client’s internal capabilities to conduct sourcing initiatives.
  • Identified 27% savings in targeted sourcing and supply chain areas.
  • Developed clear action plan to implement opportunities.