Technology industry competitors know very well that the procurement challenges they face are being continually reshaped by innovation, evolving business models, and intensive capital investment. Procurement professionals must scan for new low-cost supply opportunities while confronting potential disruptions from anywhere in their vast and complex supply chains
Impendi recognizes that special skill is needed to maintain buying disciplines within an engineering culture that is hyper-sensitive to changes that threaten to impact quality. Impendi is prepared to assist your teams to look at invoiced cost, then go further on a risk-managed journey to find and capture value within service levels, reliability, and pricing structures.
Case study: Global IT Equipment Manufacturer
A large, global manufacturer of enterprise-class IT infrastructure equipment wanted to accelerate the pace of savings capture and improve its ability to sustain the gains over time.
The Approach
Assessed the views of the supply chain landscape among key stakeholders, then deployed a Spend Diagnostic that identified opportunities to reduce spend in direct materials across all expense categories.
Performed a maturity assessment that identified culture issues and gaps in the organization’s procurement purchasing practices.
Impendi’s senior leadership joined with the C-suite to introduce new sourcing levers and methodologies and bring urgency to supplier management.
The Results
Find – Identified direct materials, and outsourced manufacturing services as area of focus with prioritized areas of targeted savings.
Get – Achieved and verified $285MM in total savings; $50MM more than its FY P&L savings target and $85MM greater than savings for 3 prior years.
Keep – Supported a complete organizational redesign that transitioned procurement from ‘tactical’ to ‘strategic’ including hiring of new category managers for most spend categories.
Case study: Cybersecurity Software
The private equity owners of a cybersecurity software company preparing for divestment sought assistance in the identification and implementation of procurement savings within IT & marketing category expenses.
The Approach
Impendi leaders conducted interviews with C-suite executives and function leaders from IT and marketing to understand their requirements and customize a suitable engagement.
Led a rapid Spend Diagnostic that identified and prioritized opportunities to reduce third-party expenses.
Mobilized a Savings Acceleration project with key client team members to capture the savings and implement processes to ensure that the improvements would be sustained.
The Results
Find – Identified 45 opportunities and a total of $2-4MM in savings within the IT and marketing functions.
Get – Working together in a PMO structure, the Savings Acceleration team met the high end of the savings target.
Keep – Impendi’s Realized Savings Tracker was adopted by the FP&A team to monitor progress and prevent leakage for future initiatives.
Case study: Manufacturer of IT Infrastructure
A rapidly growing manufacturer of enterprise-class IT infrastructure equipment was intent on capturing value from its complex supply chain and building out the strategic sourcing capabilities of its procurement function so that the savings could be sustained.
The Approach
Canvass interviews revealed the views of key stakeholders on supply chain threats and the greatest opportunities for value capture.
A Spend Diagnostic identified high priority opportunities within direct materials and other expense categories.
Led a Procurement Transformation initiative to establish the sourcing toolsets and methodologies needed to move the supplier management function from ‘tactical’ to ‘strategic’.
The Results
Find – Prioritized $6MM in saving targets within direct materials and outsourced manufacturing services.
Get – Achieved $8MM in total savings, exceeding the fiscal year savings target.
Keep – Recommended a redesign of the procurement organization and assisted in the hiring and training of new category managers.
