Definition and implementation of a new sourcing strategy
in consumables and additives, for a global leader in the chemical industry
Context
To maintain margins on the most competitive markets, this global leader in the chemical industry wanted to reduce manufacturing costs, especially the costs of procurement for raw materials and chemical supplies.
Facing an increasingly concentrated suppliers market it was becoming difficult to achieve this goal, it became necessary to rethink the product formulation. A value analysis was entrusted to Karistem’s teams with the task of finding new chemical additives, at the same quality but at a lower cost.
Assignment
This value analysis approach was based on three main objectives:
- Facilitate multidisciplinary working groups (R & D, sourcing, marketing, sales, etc…) to establish a list of alternative products
- Modelling the economic impact of each new supply in the production and sale of finished products
- Find providers and negotiate the best purchase price of these substitutes
Why Karistem?
Three key success factors explaining why Karistem was chosen:
- Its experience in the value analysis processes
- Its expertise in sourcing new suppliers
- Its ability to deliver tangible and measurable results over time