Success Story - "Cooperative Sourcing (Co-Sourcing)"

Company Description

A Fleet Management company that provides customized total fleet management and leasing solutions for
businesses and government agencies

Company Situation and Problem

  • Client organization was growing rapidly and experiencing significant changes
  • Data was limited and contained in several legacy accounting and operating systems
  • Resources were focused on growth and productivity projects in operating organizations
  • Procurement has historically been decentralized and Strategic Sourcing Resources were not available or budgeted
  • Client had initially implemented Bullet Trains and internal Strategic Sourcing Initiatives (SSI) with some initial successes
  • Experience indicated that additional opportunities existed to reduce costs through more focused Strategic Sourcing Efforts

Paladin Actions & Recommendations

  • Paladin reviewed operating statements and identified several spend categories that offered immediate opportunities
  • Subject Matter Experts dug into details and worked closely with the Client personnel to complete initial wins
  • Additional Spend Categories were identified and additional contracts were renegotiated
  • Results were presented to Management and approval obtained to complete Spend Analytics
  • Paladin was engaged to be Merchants’ Strategic Sourcing Partner to drive the SSI Program at Merchants Fleet
  • Paladin assigned a full time experienced Interim CPO to work with the Merchants’ Organization on the SSI Program
  • Additional sourcing projects were identified and completed as the Spend Analytics was completed

Client Results

  • A total of 46 projects were identified and completed with savings ranging from 5% to 40%
  • Procurement Data was identified, cleansed, categorized, and summarized into a Spend Cube for additional analysis
  • Significant favorable impact on operations and credibility established with management team
  • Funds approved for a permanent CPO position in 2016

Significant Reduction in several Indirect Expense Categories … Improved Service Levels and Contract Terms … Improved Spend Data and Spend Analysis Process… Improved Profitability and Cash Flow … Increased Shareholder Value