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An Industrial Equipment Manufacturer Extends its Supply Chain Overseas, Reducing Costs Significantly

Case Study Summary

A US-Based leader of Aerial platforms for maintenance of telecom and utility lines, seeking greater profitability of operations, selected Archstone Consulting to design and support a transformational long-term program to reduce direct and indirect materials and services costs.

The Client

A Leading Telecom and Utilities Maintenance Equipment Manufacturer.

The Challenge

Reduce costs and improve operational management of supply chain of this leading manufacturer of aerial devices, digger derricks, and specialty equipment for the electric utility telecom, and tree care industries.

The Solution

Archstone Consulting sourced or renegotiated contracts for 21 categories of spend. In addition, the team developed improved materials management process; restructured procurement organization, building internal capabilities; supported launching a new facility and the merging of collaborative supply chains.

The Results

Sourcing yielded $12M in savings on the client's spend and developed improved sourcing and materials management capabilities. Procurement organization, which had never traveled abroad, visited over 50 suppliers across 9 countries.

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