reduction of total cost of goods sold
annual cost saving in spend
pay term extension on average
A large start-up global manufacturing company with a rapid growth trajectory was experiencing significant supply, capacity, and communication struggles within their existing supply base. Most of their current suppliers were in Asia, and their manufacturing facility was in the U.S. Our client struggled to calibrate the performance of their existing supply base, measure the competitiveness of the spend, and efficiently communicate with their current vendors. They retained GSM to perform a complete spend analysis, collect all vital supplier information, assess the existing supply base, identify alternative capable suppliers, conduct a global RFQ, and put governance around all commercial terms for short-term and long-term improvement. The GSM Asia team performed on-site assessments of each supplier to gauge cost, capacity, quality, and management sophistication. Through collaborative engagement between our client, the GSM Global team, and our established supply partners, we quickly mobilized and began to reduce supply chain risk, stabilize costs, and prepare the client for strategic growth. We implemented processes, procedures, contracts, and standardized documentation to create a previously non-existent procurement function within the client’s organization.