Updating, creating, and implementing improved Procurement practices for a World-Wide Manufacturer of adhesive labels, bar codes, and tape.
Global Manufacturer of various adhesive products for paper product manufacturers and retailers
The client was faced with a situation whereby competitors were able to provide similar but inferior products with lower prices, thus impacting the clients’ margins in various product categories. Also, the client was faced with supplier sourcing changes and increasing demands from R&D for new products within the next 2 years.
Implement new procurement and sourcing processes to address competitor activity, and internal product sourcing and development needs. Refresh and re-design the world-wide procurement organization from the Buyer level to the Sr. VP of Purchasing level.
TPG led a procurement team with client representatives from North America, Europe, Asia, and Latin America to review and redesign over 25 procurement practices. Prior to this redesign TPG led the development of a functional strategy and action planning session to clarify needed spend reduction targets and future skill requirements by region. New practices were agreed to by all regions and a future state procurement staffing plan by level was designed for implementation within the next year
World-wide procurement staffing costs were reduced by 10% and over $100MM in material spend reductions (4% of total spend) were identified to be captured within the next 2 years. Support for a 20% increase in new product introductions was achieved with the new design.