Indirect Strategic Sourcing
This media industry client was aggressively moving forward with multiple initiatives to build upon its business positioning while improving profitability. Sourcing was identified as a key focus area to drive down third-party expenses and improve profitability. Additionally, there were multiple sourcing groups with little coordination across business units.
Booz & Company developed an enterprise-wide spend baseline that increased visibility across and within the business units. Stakeholder interviews were conducted to validate spend baseline and test initial improvement hypotheses. An internal assessment and external market analysis identified “wave 1” sourcing opportunities and target savings.
Savings scenario models helped to measure the impact of business unit trade-offs, e.g., specialized vs. standard printing requirements. Booz also developed the approach and led supplier negotiations to capture incremental savings above targets. Identified and realized annual run rate savings of 5 to 14 percent across indirect spend categories.
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