Streamlining Global Logistics Costs to Fight the Industry Downturn

INDUSTRY Industrial Products (Mining Equipment)


ANNUAL REVENUE 4B €

“We needed to counter the industry downturn, with a new approach to identify and delivery cost savings in our global logistics organization”

-CPO

350+ ideas

for cost savings identified

10 %

cost saving delivered

Embedded

the SCORE approach in the global category team

The Big Idea

Reduce logistics cost quickly to counter the industry downturn: To counter the downturn in the industries business cycle, the new CPO of a capital equipment manufacturer needs to reduce the cost base while building best-in class procurement capabilities at the same time.

Blueprint and Roadmap

We identified cost reduction opportunities in a balanced manner by applying a joint approach for the global logistics function and the business units.

We used our proven SCORE method to identify cost savings across 6 geographies (Europe, Africa, North America, South America and Australia/Asia). We conduct 6 Workshops across all these regions.

Creating Impact

  • Revision of all procurement categories
  • Cost savings exceeding the initial savings target identified
  • The identified cost savings and the SCORE approach has been handed over to enable the internal organisation for follow-up and implementation.

The sust.biz Advantage

  • Our Industry expertise
  • Our Procurement expertise
  • Our practical, hands-on and results-focused approach
  • Our ability to bring together cross-functional and globally dispersed teams
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