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

Procurement Cost Structure Reset in a Regulated Growth Environment

The core opportunity was to convert fragmented, reactive purchasing into a controlled procurement model that could improve EBITDA and scale with the business.

Business context

Situation

A rapidly growing business had scaled revenue faster than its procurement discipline. Supplier relationships, pricing, PO controls, spend visibility, freight management, and governance were not mature enough to support the cost structure the company needed.

The challenge

No mature procurement function existed to manage pricing, terms, suppliers, and spend discipline.
The vendor base was fragmented and supplier leverage was underused.
Purchasing was reactive and vendor-driven.
PO controls, supplier segmentation, and spend tracking needed to be built into the operating model.

What was done

Led a full commercial reset across freight, 3PL, warehouse, vendor, and sourcing categories.
Renegotiated freight, parcel, LTL, international, 3PL, and warehouse agreements.
Consolidated suppliers and introduced competitive sourcing where leverage existed.
Built PO-driven spend management, supplier segmentation, spend visibility, and governance routines.
Tied negotiated savings to system enforcement and invoice-level validation.

Outcome

Reduced freight cost and improved vendor economics across multiple spend layers.
Moved procurement from reactive purchasing to a controlled, data-backed operating function.
Established procurement as a repeatable value creation engine rather than an administrative cost center.
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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