Operations performance

Savings of 20% Generated by Reviewing Purchasing Levers

"Ayming identified savings of over $17M through a detailed diagnostic."

Situation

The Challenge

A leading global automotive manufacturing group was spending over $350M in procurement, yet was lacking a clear understanding of the purchasing function, especially when it came to indirect expenditures. There was a lack of sharing best practice or leveraging purchasing across the group, leading to issues with category management and inconsistencies with low cost sourcing.

Results

Ayming consolidated the supplier base, thereby leveraging economies of scale. Sharing best practice across sites, particularly for indirect expenses, enabled the company to establish internal benchmarking, leading to the identification of savings across all three purchasing levers. This detailed diagnostic resulted in over $17M in savings being identified for the client.