Procurement Transformation

$4B Equipment and Services Provider

Background

  • A $4B+ provider of equipment and services for data centers with 25 manufacturing and assembly locations worldwide
  • The private equity investment thesis of EBITDA(R) growth through reorganization, process improvement, and a finance link

Contributions

  • Reorganized the Americas procurement division to be commodity-focused
  • Created job descriptions for all roles
  • Assigned a commodity manager to be the key contact point and supplier relationship owner
  • Created a supply manager role for each commodity
  • Implemented a procurement skills assessment tool

Results

  • $2M operating expense (OPEX) reduction
  • 75% increase in each commodity managers spend
  • Reduced FTEs 36%
  • Heightened focus on solving material availability issues impacting plants