A large publicly traded mining and minerals processing corporation was searching for ways to preserve profit margins in the face of general economic turmoil and rising supply costs. The company enlisted the services of Source One to help them leverage their spend and consolidate contracts across 44 locations in North America.

It turned out that Source One was also able to develop creative solutions to current sourcing problems, improve reporting, and elevate the client’s level of spend visibility in roughly fourteen MRO categories.

Through a combination of the introduction of competition, utilization of strategic relationships with supplier conglomerates, and extensive negotiations, Source One managed to produce an average annual savings of 14%. Furthermore, the sourcing effort helped the client company's managers hone their plant purchasers' ordering, inventory, and reporting methods.

For each product category, the client, various suppliers, and Source One worked as a team to develop and implement an effective change management program. Source One’s implementation efforts, which are included in the company’s pay-for-performance cost model, also provided the client with the resources it needed to get all of its various plant managers on board and up to speed. Source One also audits the client company’s purchases monthly for compliance to help ensure the program’s success.

Source One accomplished the initiative's primary goal of creating cost savings without any major disruption of the client's business processes. More than this, Source One provided the client with the tools, insight, and relationships necessary to continuously improve their sourcing procedures. As a result of this sourcing initiative, the client company is enjoying cost savings as well as better reporting systems, strengthened supplier relationships, and elevated control over total spend.

Full Case Study: http://www.sourceoneinc.com/strategic_sourcing_mro_case_study.html
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