Challenge:
A diversified multinational company in the field of energy wanted to leverage the cost efficiencies available in the Indian market - specifically in metal & fabrications.
- They had a local sourcing team
- They were tasked with supporting multiple business in Europe and Americas
Solution
Since there were multiple stakeholders spread across the globe, we decided to make standardized business cases across wide ranging categories. This helped the team identify, prioritize and implement multiple cost saving opportunities.
Process
Cost-Benefit Analysis: Ranked projects based on cost of implementation vs expected cost savings
Should-Costing: Performed thorough costing based on knowledge of local raw material prices as well as value addition at each manufacturing step
Phased Implementation: Recommended a series of sourcing waves spread across categories and ended up with more than $4 million in annualized savings
Results
BCube was able to identify over 16 cost savings opportunities, thanks to our expertise in analytics combined with our experience implementing similar projects. We also succeeded in narrowing the client's focus towards projects that had a greater chance of success.
