Multi-site international beverage manufacturer

Challenge

The client set IESA an annual cost savings target of 2.5%.

IESA aimed to surpass the client's expectations of cost savings by finding new opportunities to reduce costs while maintaining quality levels without affecting supply.

Objectives

IESA sought to generate cost savings for the client, reduce inventory levels and increase stores space and efficiency.

IESA also attempted to increase engineering efficiency by utilising the expertise of key supply partners.

Solution

Working with a supply partner, we identified a commodity range that had the potential to be rationalised.

IESA and the supplier identified a range of products, currently procured through six different suppliers with varying costs, which could be replaced by a single product.

The supplier demonstrated the functionality and efficiency of the product to the client's engineers and proved that it was fit for purpose.

At the end of a trial period, the client unanimously approved the project and the range of products was permanently added to the supply chain

Benefits

  • The client enjoyed a unit cost saving of 15.6% and was able to reduce its stock holding value by 60%.
  • The recommended product also had a unique two-year manufacturer warranty.
  • The client and the IESA supply partner went on to work on further value add projects together.
  • This process gave the client increased confidence in the engineering value add that IESA can offer.