Large Independent Printing Company

In a highly competitive market, the client sought ways to reduce costs and expand their market share. They initiated a global Strategic Sourcing program to enhance supplier relationships and drive efficiency.

The KGM team conducted a thorough analysis of the client’s supply base and transportation costs. Key savings opportunities were identified, along with technical and organizational barriers affecting cost efficiency.

• Conducted interviews with cross-functional teams and gathered benchmarking data to assess costs.
• Identified potential collaborations with suppliers in Eastern Europe and Asia to enhance efficiency and quality.
• Developed skill-based training programs, project plans, and timelines to achieve savings goals.
• Performed an end-to-end supply chain diagnostic to map the current state.

KGM executed a strategic sourcing initiative targeting six key categories, including Paper, Ink, MRO & Production Supplies, Office Supplies, and IT Equipment.

• Gathered and outlined detailed data requirements.
• Restructured the sourcing department, aligning roles with industry best practices.
• Provided comprehensive training to client teams on Methodology, Executive Communication, Negotiation, Project Management, and Alliance Management to ensure long-term sustainability.
• Defined and prioritized negotiable issues for each category.
• Encouraged the client to explore global suppliers beyond their traditional 150-mile radius.

Significant cost savings were achieved by optimizing the client’s supply base and enhancing supplier alliances. The initiative delivered over $18 million in annual savings.

• After conducting 160 negotiations with key suppliers, reduced the supply base by 75%.
• Implemented consistent processes across all divisions and functions.
• Established clear metrics for evaluating supplier performance and alliances.
• Introduced professional development metrics for the client’s organization.
• Reduced inventory turns through programs like consignment, JIT, Kanban, safety stock, and VMI.
• Secured tiered volume rebates and dedicated manufacturing capacity.
• Achieved Commodity Base Price Stability.
• Improved On-Time Delivery metrics to exceed 98%.
• Provided engineering support for New Product Development and Product Rationalization.