CUTTING COSTS THROUGH STRATEGIC SOURCING
SITUATION
One of Rothers Tech’s clients, a leading manufacturer and supplier of advanced composite materials for the aerospace and defence industries, was under increasing pressure to reduce costs in order to remain competitive globally. Advanced material development and production costs are complex. The material technology is state of the art, strict standards are required, and the number of qualified suppliers is limited. The challenge was to develop practical sourcing strategies that worked with these constraints but delivered the essential savings.
SOLUTION
Rothers Tech knew that simply finding cheaper suppliers wouldn’t provide a long-term solution. Therefore, to ensure the longevity of the results, Rothers Tech conducted a fundamental review of suppliers, contracts, programmes and opportunities. Rothers Tech developed a procurement strategy that didn’t just provide more economical sources, but restructured the entire supply chain framework and transformed how the company worked with its suppliers.
RESULTS
The strategic sourcing initiative was a major success. Benefits include:
• Procurement organisation has consistently met cost reduction targets
• Supplier consolidation has provided significant scale benefits
• The company now ranks as a top performer, particularly as a procurement organisation
