Delivering an integrated sourcing strategy across a global organisation

A multi-national aerospace division with annual sales of £330m had created a new division as part of a group restructure. The division now needed to align the business units to deliver synergies and sourcing savings.

The client had conducted an initial spend assessment and required Core Partners to develop and implement a sourcing strategy to consolidate spend and unite the 27 business units within the division.

We initially applied our strategic sourcing methodology to the printed circuit board assembly category. The process identified that more than 50 different suppliers were currently used. A series of quick wins were put in place to generate immediate savings, and spending power was combined across the businesses, enabling the client to operate more effectively across the supply chain. This meant access to advanced technologies, better material leverage, and manufacturing economies of scale. To embed the integration, Core Partners developed a transition programme and advised on the business infrastructure required to ensure sustainable change with minimal business risk.

The results generated saw typical savings of 20 per cent across the division and improved overall purchasing power through the selection of two suppliers and consolidation of spend. The supply chain assessment process also saw a marked improvement in quality and delivery performance from suppliers, significantly reducing risk across the supply chain.