Optimizing and Outsourcing Raw Materials Tail Spend

The Client was an international Manufacturing Company Headquartered in Europe providing specialty formulations with applications in several industries from personal care to lubricants.

The Context

The company had been historically focused on specialties, placing raw materials sourcing and competitiveness as a second priority. Top raw materials had been thoroughly optimized but the company was facing some headwinds and pressure on the more commoditized part of the portfolio and is looking for additional sustainable savings. In addition, exchange rate variations and trade wars could significantly impact the supply and demand balance and competitive landscape. And the company was looking for alternatives.

Support to find expert consulting firms was extremely useful

~VP Purchasing

The Challenge

The purchasing team had to develop a plan to deliver significant results in raw materials savings for the years to come.

The Mandate

  • Support the RFP elaboration and Source trustworthy global consulting firms with strong expertise in both Procurement and Chemicals to provide a diagnosis of the situation, design a plan to capture the savings and support the implementation by handling the negotiations as a temporary workforce.

The Results

  • Consulting Quest sourced Three Global Providers with Very Niche Expertise and helped Shape Performance-Based Fees.
  • Fees were 50% lower than expected budget.
  • The client achieved payback within the same calendar year with a 4-time ROI.

50%

Less Expensive than budgeted

4x

ROI in the 1st year

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