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Case Study

Reducing Costs and Improving Service Through Strategic Sourcing


We managed and executed an effort to improve the pricing and service levels of our client’s sourcing function on a global level.

The Situation

Our client, the procurement function of a Fortune 500 consumer packaged goods company, needed to identify the spend categories that could be improved from a pricing and service perspective. Because the client had neither the capacity nor the collective body of experience required for this project, we partnered with a strategic sourcing consultancy to launch a global strategic sourcing initiative.

The Satori Solution

Our first area of focus was the client’s IT function. We analyzed a complex series of spend categories to document the business needs, then defined and executed a new sourcing and service strategy.

The client had also identified its Latin American operations as a primary target for sourcing initiatives. We targeted Temp Services and Transportation, along with the Latin American procurement function as areas in which spend categories could be improved. We applied the guidelines and process methodology of the broader initiative to these functions to create new sourcing strategies for each function.

The Results

The project generated a total estimated savings of $100MM USD: 50% in IT Consulting, 33% in Temp Services, and 15% in Transportation.


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