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Massive Savings Achieved through Sustainable Supply Chain Spend Management

The
Challenge

The new head of Supply Chain sought assistance to quantify their total indirect spend by category, identify opportunities for cost reduction, and develop a business case for centralizing the management of this spend.

The
Custom

Solution

Sirius Solutions conducted a thorough spend analysis, reviewing accounts payable (AP) data for both corporate and company-operated stores. The team segmented the spend by supplier and spend category, and key contracts were reviewed to assess pricing, contract scope, and terms and conditions. An organizational assessment was performed to evaluate existing capabilities and propose a design to sustain indirect spend management over the long term. Opportunities for cost reduction and improved supplier performance were identified. Sirius Solutions developed sourcing strategies to achieve these cost reductions, prioritizing opportunities by value, impact, and ease of implementation.

The
Impactful
Results

Sirius Solutions provided a business case and strategic roadmap for creating an Indirect Procurement organization, enabling the sustainable management of indirect spend. The project, completed in six weeks by two consultants, delivered an impressive ROI of $16.95 million. The team identified $700 million in repeatable and addressable spend, with $17 million in prioritized savings opportunities.

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