This company’s issue was their lack of a procurement strategy, fragmented purchases, increased product safety risk, high logistical costs, delivery deficiencies and major obsolete. In other words, we were facing some real challenges.
We began improving the situation by evaluating the product suppliers and concentrating procurement.
We also concentrated on logistic services, making the entire supply chain more efficient and optimizing the inventory.
As a result of the changes, there was a great improvement in cost efficiency and payment terms of the client’s logistics, freight costs were decreased, and the working capital was reduced significantly. Waste was reduced as a “side effect” of the development process and product safety improved as a result of a more rigorous procurement process.