Project Name:
Strategic Sourcing
Company Overview:
- Company provides a full range of vehicle auction, reconditioning, logistical and other vehicle-related services to meet the remarketing needs of both its institutional and dealer customers
- The Company had grown quickly through acquisition and had not integrated systems or processes leading to an inefficient operating model
Project Scope:
- Reduce cost through strategic sourcing
Project Outcomes:
- Achieved cost reductions totaling $25m in annualized savings
- Implemented savings of over $5m/year by week 18 of the project
- Develop & Install effective performance metrics (Productivity, Cycle Time, Inventory Turns, etc.)
- Centralize Procurement functions to leverage specific commodity and services volumes over fewer vendors, focus on PPV
- Standardize key processes across all sites
- Rationalize “span of control” for management levels
- Extensive emphasis on management training
