$150M
Annual revenue
Procurement Optimization Yields Double-Digit Savings for Mid-Sized Scientific Manufacturer
A scientific technology manufacturer faced procurement inefficiencies after a decade without a systematic spend review. Together with its procurement and operations teams, EFESO implemented a comprehensive sourcing program across critical commodity categories. The transformation delivered sustainable cost reductions while establishing new procurement capabilities for ongoing optimization.
Industrial Manufacturing
Procurement
Supply Chain
Our Client
This mid-sized scientific technology manufacturer specializes in advanced testing equipment, serving global markets. The company supplies diverse industries including oil and gas, batteries, hydrogen capture and automotive.
With a complex direct materials portfolio and a global supply base, the organization operates at the intersection of precision engineering and scientific innovation. Its procurement function manages multiple commodity categories spread across fragmented supplier relationships.
+10
Years without procurement review
6
Key commodity categories targeted
The Challenge
The manufacturer’s procurement strategy had not undergone a systematic review or been optimized in over a decade, creating significant operational inefficiencies.
- Fragmented spend patterns – Purchasing was distributed across numerous suppliers without a consolidation strategy, limiting negotiation leverage and preventing economies of scale
- Data and documentation gaps – Missing or inaccurate drawings, unavailable part data and inconsistent historical purchasing records complicated spend analysis and supplier evaluation efforts
- Internal resistance to change – Engineering teams opposed sourcing initiatives, particularly for technical components such as fittings, claiming existing suppliers were irreplaceable for quality reasons, despite a lack of competitive benchmarking
Real Results Achieved Together
The six-month procurement optimization program transformed fragmented purchasing into strategic sourcing across critical categories. Working alongside the client's teams, we established new supplier relationships, negotiated favorable contracts and built sustainable procurement capabilities.
16%
Overall procurement cost reduction
32%
Savings on PCBAs through domestic sourcing
21%
Cost reduction on fittings via domestic suppliers
6
Months to full implementation
Transformation Impact
- Developed a category management roadmap and organizational structure for ongoing optimization
- Increased procurement skill levels through hands-on strategic sourcing execution
- Established new tools and processes for systematic spend management
Our Approach
The engagement began with rigorous spend analysis, mapping and classifying all purchasing data to identify high-impact categories.
We mobilized a cross-functional team combining procurement, operations and engineering stakeholders. Actionable workstreams targeted PCBAs, fittings, machined metal parts and cable assemblies.
The team developed custom RFQs with select SKUs, conducted supplier searches and screens and launched competitive sourcing events. Through a systematic evaluation of quotes from multiple suppliers, including incumbents, we negotiated favorable contracts and awarded business strategically.
Success depended on securing early buy-in from procurement and operations leadership and addressing engineering resistance, through initial testing and demonstrating potential cost savings.
The approach emphasized the benefits of domestic sourcing to balance cost reduction with supply chain resilience, which was particularly important given tariff considerations.
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Facing Similar Procurement Challenges?
- Struggling with fragmented spend and limited supplier leverage after years without review
- Seeing potential for significant savings but facing internal resistance to change
- Ready to transform procurement from tactical buying to strategic value creation
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