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Home | Results | Case Studies | European Printing Company

European Printing Company
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CASE STUDY SUMMARY
Gibson Helped Client Realize $15 Million in Annual Savings and Improved Relationship with its Strategic Suppliers

  • Conducted 151 negotiations with key suppliers in the defined commodities and reduced supply base by 70%
Industry
Consumer Products

Lead Partner(s)

Issue: In an increasingly competitive market, the client looked at ways to reduce their cost and increase their market share. They opted for a global Strategic Sourcing initiative to also improve their relationship with their suppliers.

Result:

The client realized more than $15 million in annual savings and improved relationship with its strategic suppliers.


Client Background:

With over $4 billion in annual revenue, our client is a major independent printing company based in Europe. Offering services for all print, packaging, mailing and distribution needs, our client has a global distribution network that heavily relies on on-time delivery and high product quality.


Evaluation:

The Gibson team gathered and analyzed the client’s supply base and current transportation costs. Potential savings opportunities were uncovered and various technical and organizational issues impeding cost-effective performance were identified.

  • Conducted interviews with cross-functional management teams and gathered extensive data to benchmark costs
  • Identified opportunities to work with suppliers in Eastern Europe and Asia to improve efficiency and quality
  • Created skill-based training, project work plan, and timeline to realize savings
  • Performed a detailed end-to-end supply chain diagnostic to map out current state

  • Approach:

    To take advantage of cost-savings opportunities, Gibson implemented a strategic sourcing project targeting five specific categories, including Paper, Ink, MRO & Production Supplies and Office Supplies.

    • Gathered and outlined data requirements.
    • Revised sourcing department organizational structure and created job descriptions and qualifications consistent with those considered “Best in Class.”
    • Trained client teams in Methodology, Executive Communications, Negotiations, Project Planning/Management & Execution and Alliance Management to ensure sustainability of improvements.
    • Invested significant time and resources to thoroughly understand the industry and the commodities marketplace.
    • Defined and carefully developed each negotiable issue for effective/efficient negotiations.
    • Challenged client to truly consider “Global” suppliers and not necessarily rely on those suppliers within a 150 mile radius of their manufacturing facility.

    Results:

    Cost savings were achieved by reducing the client’s supply base and significantly improving alliance management. Ongoing cost reductions will be sustained by new organizational structure, which has increased the awareness of sourcing issues among management.

    • Realized over $15 million in savings annually.
    • After conducting 151 negotiations with key suppliers in the defined commodities, reduced supply base by 70%.
    • Established consistent process across all divisions and disciplines.
    • Established clear metrics to evaluate supplier alliances
    • Mutual development of KPI’s for monthly reporting and measurement.
    • Established clear metrics for client’s organization for professional development and measurement.
    • Significantly reduced inventory turns by implementing inventory management programs such as consignment, JIT, Kanban, safety stock, VMI programs, etc…
    • Offered tiered Volume Rebates.
    • Established Commodity Base Price Stability.
    • Offered dedicated manufacturing capacity.
    • Commodity Base Price Stability.
    • Established On-Time Delivery metrics of >95%.
    • Engineering support for New Product Development as well as Product Rationalization.







     


    Supply Chain, Strategic Sourcing, Progress, Goals, Results








     
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