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Home | Results | Case Studies | Mailing/Printing Systems Manufacturer

Mailing/Printing Systems Manufacturer
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CASE STUDY SUMMARY
More than $100 Million in Client Savings
(on Spend of $1.1 Billion)

  • Client reduced supply base by 22% and improved supplier on-time delivery by 30% and improved Quality by 15%
Industry
Consumer Products

Lead Partner(s)

Issue: Rising transportation costs due to demands of an increasingly service-oriented customer base.

Result:

The client realized more than $100 million in savings (on spend of $1.1 billion).


Evaluation:

With a customer base dominated by “big box” retailers, our client was expected to deliver year-over-year annual price reductions. They had several joint ventures established in Taiwan and China for finished goods, but a global sourcing strategy for components was not as developed. Gibson analyzed 6 manufacturing sites and over $600 MM in annual expenditures to identify opportunity areas. Preliminary savings estimates ranged from $11.0 to $17.0 MM.


Approach:

Gibson completed a strategic sourcing and outsourcing project that focused on 25 spend categories over the course of 2 years. Gibson trained and worked side-by-side with over 75 client professionals to strategically source all 25 categories and perform a make vs. buy analysis on 5 of the 25 categories. In summary, this client negotiated and site visited 150 suppliers from 11 countries.


Results:
The project generated over $28 MM in realized cost savings and over a $.16 annual earnings/share improvement. Many international suppliers were selected, including 2 Chinese suppliers for not only components, but also for value-add operations as part of a “buy” decision. Client reduced supply base by 22% and improved supplier on-time delivery by 30% and improved Quality by 15%.







 


Supply Chain, Strategic Sourcing, Progress, Goals, Results








 
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