CASE STUDY

Strategic Sourcing Initiative

A leading US manufacturer of kitchen and bathroom fixtures and fittings faced significant challenges due to increased US–China tariffs and rising shipping costs. Additionally, global supply chain risks were escalating, requiring proactive management. To address these issues, the client needed a structured approach to control costs and mitigate supply chain vulnerabilities.

ArcBlue was engaged to conduct an end-to-end procurement process over an intensive four-month period.

Key activities and contributions

Defined Evaluation Framework: A comprehensive evaluation criterion and weightings were developed and aligned with the client to guide supplier assessments throughout the process.

Procurement Execution: Initiated a robust sourcing process, received and assessed supplier quotations, and conducted negotiations.

Proposed volume allocation adjustments to optimise supplier performance:
- Increased volumes for strategic, high-performing suppliers.
- Maintained volumes for capable suppliers with lower strategic importance.
- Reduced volumes for less strategic and less capable suppliers.

Transition Plan Development: Delivered a detailed transition roadmap for each product category, including resource planning, risk identification, and mitigation strategies.

Qualitative Benefits

Related Services

Supply Chain Optimisation

Procurement-as-a-Service

Related Industries

Infrastructure & Construction

Insights

Cost Optimisation Series: Part 1 – How Data is Transforming the Procurement Landscape

AI in Procurement: The Human Touch in a World of Algorithms

The Benefits of Focusing on Procurement Maturity

TOP 10: Tips for Successful Procurement Transformations

Empowering Tomorrow’s Procurement – 7 Trends to Prepare for in 2024

Get more value from your Spend Analytics

10 Traps and Tips: Digital Procurement Implementation

How can we make procurement more simple?

Reducing costs and protecting profitability

Digital Procurement & Customer Centricity

Supporting public sector procurement

How can procurement support Australia’s growing infrastructure needs?

International Development Procurement: The Need for a Strategic Approach

Top 10: Tips for Successful Procurement Digitalisation

Top 10: Tips for Unlocking The Power Of Your Procurement Data

The Secret to Successful Change Strategies

Successful Procurement Solution Implementation

Drive business benefits with analytics

Enabling positive outcomes in council

Top 10: Questions to Ask When Choosing A New eProcurement System

Procurement, the game is changing

Established a Collaborative Framework

Fostered cross-platform collaboration within the client’s plumbing portfolio, creating a template for future engagements
Enhanced Supplier Leverage

Increased purchasing power by consolidating volumes across the plumbing portfolio, driving additional savings
Strengthened Supplier Relationships

Built a more robust and strategic supplier portfolio, ensuring long-term reliability and competitiveness

Need help in de-risking your processes?

Across the Asia Pacific region, many organisations are endeavouring to ‘de-risk’ their supply chains as recent constraints have highlighted the risks of relying heavily on a sole supplier, or on supply from a single location. ArcBlue works with organisations to help build-in resilience, optimise risk management and integrate procurement into supply chains.

Find out how ArcBlue can help you

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