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Success Story - "Flexible Intermediate Bulk Containers"

Company Description

$1.1 Billion Diversified Mineral Company Serving U.S. and Canada

Company Situation and Problem

Flexible Intermediate Bulk Containers (FIBCs) were used for diverse purposes in 6 locations across the U.S. and Canada and had not been sourced in several years.

  • Previously, sourcing was completed locally or regionally rather than on a company-wide basis.
  • One site had recently qualified a new supplier for their own FIBC needs.

Paladin Actions & Recommendations

Working closely with the Client, Paladin documented company-wide spend and critical requirements for FIBCs.

  • Paladin then led a cross-functional team through all phases of the sourcing process, including potential supplier identification (domestic and foreign), RFI completion, pre-bid and e-Auction, using an e-sourcing tool.
  • Fleet specifications were modified to delete features and options not required by the Client‘s operations.
  • The team narrowed the potential supplier field after each step of the process.
  • Finalists participated in an e-Auction which led to incremental savings over pre-bid pricing.
  • Paladin developed and executed the supplier/product accreditation plan.

Client Results

Significant double digit savings plus:

  • FIBC specification documentation with standardization.
  • Greater internal communication between various FIBC users at company sites.
  • Benefits leveraged across the entire company, rather than at a local level.
  • Increased awareness of, and willingness to work with, Client’s Centralized Sourcing Organization.
  • Consolidated RFI, Pre-Bid and eAuction reporting generated by e-Sourcing tool.
  • Robust accreditation process across all sites and dedicated supplier contact.

Specification documentation enabled identification of new suppliers and e-Sourcing tools maximized savings