Global Diversified

Industrial Company

Key Products Sourced:

Computers & Servers

Challenge:
  • Little cross division collaboration on indirect materials and services procurement
  • Resistance at the division level to share procurement responsibilities with corporate
Solution:
  • Conducted cross-functional workshops to identify the products to be considered
  • Created cross-divisional, cross-functional teams to lead the projects identified
  • Collected material specifications, product performance requirements and annual usage
  • Established company-wide specifications for servers, laptops and desktop computers
  • Executed global supplier outreach
  • Identified screened, and pre-qualified potential suppliers
  • Completed initial round of "paper quotations"
  • Identified the existence of a market for an electronic auction
  • Executed a global electronic auction for $25M in annual spend
Results:
  • Identified and selected one supplier to supply servers, laptops and desktop computers globally
  • Standardized product specifications globally
  • Achieved annual savings of $12M
  • Implemented global supply and service contracts for all products