SMB -That Procurement Project

The Challenge

A client in the Packaging industry was looking to review and build a fact base around one of their key input raw materials viewed as being very highly technical and complicated to manage. The master data and purchase order data provided limited visibility to the actual raw material utilized due to most inputs being free text as opposed to having clear descriptions and material code numbers that matched the supplier material descriptions on the rate card. There were Bills of Material with the associated raw materials that linked to specifications, but these were also not maintained.

The Solution

We utilized 2 years-worth of data to build a profile of the raw materials used by the manufacturing plants
We identified the repeat items that had been consumed across plants and prioritized them for cleaning and mapping to rate cards and associated specifications
We also issued a request for information to the suppliers and site stakeholders with the consumption data and key data fields and specifications that needed tobe completed
Discrepancies in text and descriptions were addressed through this matching and mapping. The descriptions and rules were then developed to support development of clean master data and on going management

The Outcome

Through a fact-based approach, we were able to build a robust fact base to support the ongoing management of the raw material category
Identified quick win opportunities to consolidate the buying of specific raw material around a cluster of plants delivering 8% in savings through consolidation
Identified rate card discrepencies across 4 plants for similar raw material, delivering 4 % in savings through harmonisation of rate cards

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