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Case Studies

Sourcing & Procurement

Sourcing of subcontracted services for tier 1 supplier

Applied Value condensed thousands of vendors into fewer than 50 preferred vendors and generated savings of 8 MUSD for a Tier 1 supplier.

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Situation

A Tier 1 Supplier had over 479 MUSD in subcontracted services spend that was being sourced locally through thousands of sites. Rates were being negotiated individually by front line managers instead of supply chain professionals, and the company’s purchasing power was underutilized because of limited procurement team visibility.

Approach

Applied Value categorized and standardized spend and vendor data in the six largest metropolitan regions for indirect spending. AV identified current vendors and potential new vendors regionally and nationally to quote in all different trades. Applied Value then engaged vendors in a standardized RFQ and negotiation process and provided preferred vendor recommendations in each trade. AV also built a roadmap and strategy for for realizing all the identified savings opportunities. 

Results

Applied Value condensed thousands of vendors into fewer than 50 preferred vendors,  generating savings of 8.0 MUSD nationally. Furthermore, detailed strategies and roadmaps for how to realize savings and new quoting templates to ensure proper detailing of services in the future supported long-term implementation.

Up to 8 MUSD million USD

savings

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