| PC Strategic Procurement - Reducing
Cost/ Improving Value |
| Client: |
$2 billion international diverse
manufacturer with annual PC expenses in excess of $20 million across its 30 business
units. |
| Need: |
Each unit had its own procurement
procedures. There were no enterprise-wide master agreements. The business units did not
want a "one size fits all" solution dictated by corporate. |
| Deliverables: |
Three-year hardware, software and services
agreements.As facilitators and team members, PROCure built a small team representing the
business units, developed 3-year forecasts; led the team to select qualified vendors;
analyzed vendor proposals and negotiated contracts. |
| Results: |
Savings of $27 million or a 45% reduction
in expenses over three years. |
|
| Worldwide Communications System -
Consolidated Procurement |
| Client: |
Global computer electronics firm, with
$7-8 Billion annual revenue, doing business in 138 countries worldwide |
| Need: |
Consolidate and negotiate worldwide
communications products and services for voice and data, valued at over $120 Million
annually. |
| Deliverables: |
User requirements, network requirements,
configuration, topology and design. Developed a Request for
Quotation (RFQ) document and processes for the evaluation and vendor selection (RFQ
included AT&T, MCI, Sprint and other carriers), supplier evaluation and selection,
negotiations and contracting strategies and support. We anticipate follow-on work in the
areas of deployment planning, readiness and execution; as well as current supplier
transition to new supplier. |
| Results: |
Improved services and commitments.
Increased technical and business flexibility. The contacts when issued will amount to $120
Million plus for three years, involving multiple suppliers with a complex mix of services.
Savings will be over $15 Million during the initial three-year contract. |
|
| PC Procurement –
25% Savings on Hardware Alone |
| Client: |
$250 Million electronics manufacturer |
| Need: |
- Client wanted to build enterprise-wide cooperation, gain consent on
desktop and server standards and establish master purchase agreements.
|
| Deliverables: |
Built a team representing all business
units, |
| Results: |
The company will save in excess of
$500,000 on hardware and software alone. Services would save an additional $3+ Million. |
|
| Component Supplier Management System |
| Client: |
$10 Billion Supplier of Network Hardware
and Software Products. |
| Need: |
Evaluate, select and implement a
commercial "Component / Supplier Management System" to reduce component costs
and streamline product qualification processes. Achieve alignment between competing
product alternatives across multiple business units. |
| Deliverables: |
Completed evaluation and selection of a
system to integrate worldwide electronic component purchasing, via data from over 16 MRP /
ERP, CAD, PDM and purchasing systems. |
| Results: |
Achieved consensus in good team process.
The system consolidates information, and will allow strategic contracting to provide
annual savings of over $25 Million. |
|
