This midmarket manufacturer wanted to expand their role from focusing on direct materials, to encompass indirect expenditures. They asked K2 Sourcing to complete a spend diagnostic and uncover hidden opportunities.
K2 Sourcing helped provide measures to ensure success, identify key stakeholders, and explain what information was needed and why. After the initial rollout of the concepts, K2 Sourcing began tracking the collection of data and having meetings with key stakeholders to understand both formal and informal supplier agreements.
K2 Sourcing analysts combined and compared datasets from multiple sources, eliminated duplicates, appended data, and applied uniform custom multilevel taxonomies. The information was presented in a highly visual drill down style of reporting.
The results of the spend diagnostic included quick wins such as cost reductions and improvements in payment and freight terms. Numerous strategic sourcing events were identified to leverage expenditures across the multiple locations. This resulted in a full strategic sourcing project funnel and procurement assuming the strategic category management of indirect spend.