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Procurement cost reduction program in an engineering & machinery company with savings of 5-10%


The Client is one of the largest technology suppliers for food processing and a wide range of other industries with over 4 bn EUR revenue worldwide and over 18,490 FTEs.

In 2018 they launched a Procurement review program with target savings of 53 mEUR over 2 years.

During the program, some problems and complexities emerged linked to there being different entities within the client, related to recent acquisitions.

The Challenge

Our assignment was to provide support to accelerate this programme’s performance and results, focusing on 4 redblocks identified: Subcontracted Manufacturing, Field Assembly, RFQ and Negotiation Factory.

We quickly mobilized and brought additional capability and capacity to help the company in filling and delivering the savings pipeline.

The team was split between different redblocks, and activities were carried on in parallel in different countries.


  • Issued 2 x RfQs, bridging the needs of group entities: estimated 7% saving on CNC components (12mEUR total spend) and 5% on Carpentry (1,2 mEUR RfQ scope)
  • Supported negotiation on RfQs already ongoing (further 5% obtained on 4 mEUR baseline for evaporators and started negotiation on 6mEUR skids baseline)
  • Spend analysis and hourly rate collection of Field assembly suppliers, comparison and strategy definition support
  • Finalization of the new comprehensive framework for the Category Strategy Development.