Cost Reduction: Creating an extended delivery team

Business Situation

What was the problem?

Solution Implemented

How did FP resolve it?

Benefits Delivered

What was delivered?
  • No capturing of benefits from implemented sourcing strategy.
  • No ongoing value improvement from €200m fleet category spend.
  • No strategic supplier review meetings with senior stakeholders.
  • Internal governance and roles and responsibilities unclear.
  • No performance scorecards for key suppliers.
  • Sourcing strategy clarified and rigorous cost model built.
  • Governance model and comms plan agreed with stakeholders.
  • Supplier executives engaged and staff joined savings workshops.
  • Contracts and current supply chain model analysed.
  • Standardised performance scorecard implemented.
  • Visibility of total costs and drivers improved, allowing greater control.
  • €20m benefits identified in 6 weeks and €15m implemented in 3 months
  • Pipeline of qualified longer term benefit projects identified.
  • Account attractiveness improved and more open exec level comms.
  • Regular meetings established, driven by performance scorecards.

 

Examples of Value Opportunities Delivered:

Increased use of lease company nominated network and managed service facility
Internal tyre and glass contracts benchmarked with supplier and collaborative contracts established
Open book contract models developed including price control mechanisms
Joint end-to-end vehicle acquisition process review identified total cost reduction opportunities
Specific vehicle type lease cost movements tracked and controlled over the life of the contract


Approach Used to Drive Value From Suppliers:

 

Tagged by topic: Cost Reduction

Tagged by Sector: Public Sector