Case 4:
Large Manufacturing Company

Executive Summary

This historically decentralized company needed a center-led procurement capability to forge new synergies across its many business units:

• Company issued a Request for Proposal (RFP) to 15 consulting firms to address the challenge 

Greybeard Challenge

After creating a short list of 8 qualified firms, and further evaluation, the client informed us that we were selected due to Greybeard’s:

• Extensive, real-world experience
• Proven assessment and transformation roadmap process
• Strength in achieving quick buy-in and results
• Ability to communicate effectively with client's senior management and with client's procurement and logistics staff
• Commitment to transferring knowledge and skills to the client's organization — thereby building in-house capabilities
• Flexibility of approach and billing through agreements structured to meet specific client needs (month-to-month variable demand can be accommodated)
• Sensitivity to the realities at the company (other priorities must not be disrupted)

Greybeard Approach

Greybeard created a detailed assessment and a transformation roadmap, and helped enable a fast launch of the transformation process. To accomplish this, Greybeard:

• Interviewed procurement, transportation, and supply chain staff, internal stakeholders and clients, and executives
• Analyzed external spend, current contracts, and addressable spend
• Evaluated procurement strategies, processes, skills, and practices
• Assessed the current state and compared it to best practices
• Identified cost reduction opportunities by major spend category
• Presented findings, recommendations, and the business case to the executive team
• Designed a detailed roadmap to guide the client's transformation, incorporating world-class business practices
• Provided training in Strategic Sourcing & Negotiations Management
• Provided experienced advisors to coach the initial waves of sourcing teams, and ensure knowledge transfer
• Continued to provide transformation guidance and support throughout the transition to a state of greater professional capability

Results and Benefits

• Established credibility for the effort, its findings, and recommendations through the interview and assessment process
• Gained executive and functional buy-in for the transformation roadmap, the resources required, and the recommended practices and processes
• Enabled the appropriate staffing of the supply chain function
• Facilitated a fast launch of the transformation, generating significant and quantifiable financial results that received Board-level attention
• Created awareness of procurement and supply chain management as a strategic driver of improved business performance

Greybeard continues to provide as-needed, focused support as this company's supply chain and procurement transformation continues.