strategic sourcing

Supply Chain, Strategic Sourcing, Gibson Consulting
Contact Us Locations  
Home Results Careers

  White Papers  
  Case Studies  
  Articles of Interest  
Home | Results | Case Studies | Power Tool Manufacturer

Power Tool Manufacturer

Gibson Helps Client Realize $28 Million in Savings

  • Gibson analyzed 6 manufacturing sites and over $600 MM in annual expenditures
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 $28 million in savings.


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.


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 supplies from 11 countries.


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

About Us
Our Process
Industries Served
Our Clients
Global Locations

Global Practice Lines
Supply Chain
Strategic Sourcing
Lean Manufacturing
Sales & Marketing
Skill Based Training

Low Cost Country Sourcing
Transporation & Logistics
Organizational Design & Development
Sourcing IT Infrastructure
Communication & Media Services

Client Case Study

Experienced Recruiting
Campus Recruiting
Life of a Consultant
Follow us on
Supply Chain, Strategic Sourcing, Gibson Consulting