Global Sourcing and Procurement can account for more than 50 percent of total cost of manufacturing in most industries. Therefore procurement organizations are playing a more strategic role than ever before, helping companies achieve and sustain a competitive advantage by keeping costs low, providing goods and services efficiently and effectively, and drawing on the innovation and quality insights of suppliers.
Well-designed sourcing initiatives can generate substantial savings – up to 10 to 15 percent of a company’s purchasing costs and in some cases as much as 35 to 40 percent. We work closely with our clients to deliver and sustain those cost improvements, improve cross-functional collaboration, develop new capabilities and more streamlined processes, and build stronger, more productive supplier relationships. By drawing on our global network of procurement experts in countries and offices around the globe, CGN can help companies develop a customized plan to generate significant savings quickly.
Our innovative techniques include:
- Strategic Sourcing - We implement enterprise wide strategic sourcing programs or across specific purchasing categories that are collaborative and have a systematic approach for dramatically reducing external spending, while improving quality, internal processes and total cost.
- Modular Sourcing - We look at internal and external collaboration process aimed at reducing the overall supply chain costs. Assembly savings are enabled by modularity, reduced sub-assembly and main line assembly in house
- Supplier Network Rationalization - We identify and implement a supplier network to provide the lowest total cost for the business unit/enterprise given projected manufacturing footprint, quality, delivery and flexibility targets
- Supplier Identification & Development - We identify and develop suppliers in markets that line up with the supplier network rationalization strategy
- Procurement Business Process Transformation - We help clients fundamentally rethink and radically redesign their core procurement business processes to achieve dramatic improvements in critical performance measures such as quality, cost, and cycle time. CGN’s proven expertise in this area ensures that the right capabilities, governance structures, and metrics are in place to drive real, sustainable change.