An efficient supply chain is essential in today’s competitive manufacturing sector if businesses are to remain viable. With the advances in technology and supply chain contracting models, manufacturing companies can significantly reduce their supply chain costs. We assess the complete supply chain for companies and then propose ‘best fit’ supply chain solutions. We then work with our clients to tender the solution and develop strategic contracts with supply chain providers.
Working with Manufacturing Companies to Improve Supply Chain Efficiencies
Cost Reduction Programs
We complete full assessments of a manufacturing operation’s spend profile and identify the cost reduction opportunities. We do this because we have engaged the market many times for clients, and therefore know the supply market in detail. We then develop the complete sourcing program for the operation to realise the cost reduction and lead this project if required.
We find the best outcome for clients is when we lead the sourcing program, and at the same time mentor the client’s in-house procurement team, so they can then manage the less strategic sourcing events, and manage the contracts that are put in place.
The outcome of these sourcing programs is a step change in the quality of supply and services contracts, and significant cost reduction hitting the bottom-line. We partner with clients to deliver these outcomes.
To realise the full cost reduction potential, manufacturing operations requires skilled procurement professionals, suitable systems, and recent supply market information. This can be costly to achieve this level of capability in-house and contributes to unnecessary overheads. An outsourced tendering and contract management service provides the operation with the best of both worlds i.e. access to an experienced team, with all the procurement systems and market information, at a fraction of the cost of investing in in-house capability.
We provide outsourced services to the large mining corporates to fill their resourcing and capability gaps and provide on-going outsourced services for smaller operations where it does not make sense for them to invest in in-house capability. Our ROI is typically 7:1 for our outsourced services i.e. for every $1.00 spend on our services, the client typically adds $7.00 straight to the bottom-line.