Case Study

Global Hardware Distributor - Strategic Procurement

Situation

  • Global hardware distributor
  • The business was recently acquired by a private equity firm and combined with another portfolio company
  • The client wanted to leverage the new larger business to increase EBITDA 

Actions

  • Implemented sourcing teams with global commodity responsibilities
  • Created a consolidated view of purchases and a procurement strategy by commodity
  • Rationalized SKUs across the business
  • Established metrics to gauge sourcing effectiveness

Results

  • Reduced SKUs by over 30%
  • Reduced system wide landed costs by 3.5% (not including logistics cost savings)
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Argo, Inc is a global operations consulting company dedicated to implementing lasting performance improvements with offices in Chicago, Brussels, Madrid and Toronto and an active presence in more than 20 countries. Specialties include: Lean Transformation, Six Sigma, Kaizen, Revenue Enhancement, Product & Process Innovation, Sales Effectiveness, Value Pricing, Supply Chain, Strategic Procurement, Network Optimization, Transportation & Logistics, Working Capital, VA/VE, Pre/Post Merger Integration, Training.