U.S.-based supply chain, operations, systems, and performance improvement consulting
LM
LM West Consulting
Supply Chain • Operations • Execution
Manufacturing Procurement

Procurement Performance Improvement for a Multi-Plant Manufacturer

The fastest credible path to in-year value was a focused supplier commercial reset, not a slow enterprise-wide sourcing transformation.

Business context

Situation

Multiple plants had historically bought independently, negotiated locally, and tolerated inconsistent supplier terms. Leadership needed current-year earnings improvement and working-capital relief while the procurement organization was still being professionalized.

The challenge

Hundreds of low-share suppliers were spread across plants.
Payment terms and pricing varied widely.
Commodity leaders were stretched across too many priorities.
Leadership needed signed savings quickly without overwhelming the category team.

What was done

Designed a 12-week supplier commercial reset focused on the unmanaged supplier tail.
Segmented suppliers by value, leverage, implementation risk, and negotiation path.
Prepared standardized supplier asks covering price relief, payment-term extension, and demand consolidation.
Reserved RFQs for resistant suppliers where viable alternatives existed.
Built governance around spend contacted, concessions signed, RFQs launched, term changes activated, and realized value.

Outcome

Created a realistic, execution-heavy path to current-year savings and cash benefit.
Reduced dependence on one-off negotiations by building repeatable outreach, tracking, and escalation routines.
Improved procurement discipline while preserving category-leader ownership of strategic supplier decisions.
Confidentiality note: This case study is based on a real work sample and has been rewritten to remove sensitive company, customer, vendor, and financial details while preserving the business issue and improvement logic.
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