an outsourcing strategy...
Client Industry: Food process engineering company // Sector: Food and Beverage
Our client was one of the most multifaceted suppliers of secondary food processing and packaging equipment in the world,
As part of a strategic transformation programme, VA was engaged to deliver cost savings as part of a supply chain improvement project.
The VA Solution
VA was engaged to manage and deliver the project. A full review of parts and assemblies was undertaken, covering all parts used in the manufacture of all products at each of the 5 different locations. The project comprised of 4 main stages. Stage 1 was to outsource individual components. Stage 2 was to have supplier move to Just in Time delivery of CFS kits . Stage 3 was to move ordering to mechanical assembly level. Stage 4 was ordering will take at a completed module level.
€24m of annualised parts spend outsourced within 24 months.
Annualised cost savings exceeded €4M or 17% of parts spend.
Sustainable improvements in supplier quality, cost and delivery