Our client, a successful service provider, had achieved impressive growth thanks to a strong strategic focus.
It was time to strengthen the supply chain through strategic optimization of purchasing activities. Scottnordic delivered a three-step project according to the Scottnordic approach: analyse and understand, identify and prioritise and act and capture. The main challenge in the project involved developing a fact-based decision tool showing the direct impact of purchasing activities and customer pricing on our client. In the project, Big Data were converted into purchasing activities and supplier actions that Scottnordic executed over a 12-month period.
Sourcing optimization was on the strategic agenda after our client was acquired by new owners.
To transform the strategic focus into tactical objectives, Scottnordic came in to perform the sourcing assessment, saving opportunity ideas and related implementation activities. Based on Scottnordic's practical experience and proven track record, a saving potential above the due diligence estimate was discovered. The new owners had a strong focus on realisation and the sourcing assessment included a detailed step-by-step prioritisation of activities. To ensure full implementation, the new owners followed Scottnordic's recommendation of a new sourcing and procurement organization.
The client had been struggling with unsatisfactory financial performance and the board of directors decided to initiate a cost optimization project with a special focus on execution processes. Scottnordic defined a step-by-step, project-driven approach to provide a full x-ray analysis of the complete cost base. The outcome of the analysis was a transparent outlook on the interaction between cost, processes and products. Moreover, a scenario-based roadmap was developed and presented to the management team and board of directors, enabling them to decide on the future direction. Scottnordic then led the execution of the recommended cost optimization activities, and the company has now improved its financial performance.
Our client had experienced strong growth and there was a supply chain demand to increase capacity. Scottnordic were involved in the challenge at an early stage, when structured driven outsourcing was recommended as the solution. Together with the Production Engineering team and key operators, Scottnordic performed a detailed make or buy analysis and a process map of the most suitable products to be outsourced when balancing cost, complexity and capacity. The company gained the required capacity and developed a more flexible cost-base and is now prepared for further growth.
Our client was facing challenges within their project purchasing organization, causing problems for order execution. The pre-study analysis of the state within purchasing conducted by Scottnordic confirmed the need to transform the setup from traditional purchase to a supply chain management discipline. Throughout the project, the processes were mapped, discussed and improved. Furthermore, as the client was a project-orientated company, a scenario planning tool was developed to support order execution from engineering to purchase. Scottnordic executed the transformation through a 5- month supply chain interim position including supporting the setup of a high-performing supply chain team.
Our client had gained a strong market position and needed to develop their supply chain architecture and manufacturing footprint to take the company to the next level. Scottnordic performed a supply chain assessment across multiple sites, including a make or buy strategy per site. The assessment was conducted in close collaboration with the management team and the new owners to ensure full alignment with the corporate development of the company. The execution of the supply chain recommendation was made in the following years, leaving the company with a solid footprint and a clear make or buy strategic direction.
Our client, an industrial market leader in their field, had achieved strong growth in order intake and was struggling with the execution of their order backlog. They were in an exit period with a strong focus on delivering key figures as communicated in the prospect. Scottnordic supported the client over a 3-month period with analysis of capacity outlook and stock level development. Key levers for quick capacity improvement were identified and initiated. Throughout the project period, Scottnordic was present onsite and drove the execution of capacity improvement, ensuring that the order backlog was delivered on time. After completion of the project, the company's exit was finalised successfully.
All companies have sourcing potential. Scottnordic performed a structured sourcing pre-screening survey to map and identify the client's full potential by executing a sourcing journey. The client was a project-driven company who had made on-off attempts to setup a sourcing function. A consolidated overview of the master data and figures was poor as the focus had been on executing individual projects. Scottnordic managed to create transparent figures and, in close cooperation with the key people in the organization, the sourcing potential was mapped and documented. The sourcing survey also included a strategic roadmap of how to develop and implement sourcing as a strategic function for the client.
As part of a new manufacturing footprint outlook, our client followed the strategic recommendation of executing a manufacturing relocation combined with a structured outsourcing programme. Scottnordic acted as the driving force in executing the relocation and outsourcing over a 12-month period. Throughout the project, assembly areas were created in the receiving locations and a strong supplier network was developed in close collaboration with the sourcing team at the client base. The client gained a more cost-competitive and agile setup combined with reduced supply chain complexity.
Need for creating transparency throughout the supply chain across multiple sites to understand the cost structure of individual products. That was the objective defined by our client as part of their strategic focus within pricing and costing. Scottnordic acted as the project manager, reporting to the senior management team. The outcome of the project was a detailed analysis and cost breakdown divided into fixed and variable costs, including mapping of cost drivers. Moreover, Scottnordic initiated a cross-functional focus on cost reduction activities and related impacts on price setting. A transparent product cost dashboard across sites was created to track development.
Product rationalization and strategic outsourcing were key in the project where our client was starting a supply chain transformation journey. Scottnordic participated in the journey and delivered a category pilot as a part of the future direction. The project was focused on a structured supplier search and selection process, supplier negotiations and an implementation roadmap. During the whole project, Scottnordic worked closely with the client to develop their competences. Once the project was completed, the client gained a strong supplier setup based on a fact-based decision process and a transparent cost price setup.
A change in product scope at the client implied a need for project purchase optimization. The starting point of the project and the interaction with the client was a basic Scottnordic cost survey of the complete company cost structure. Based on the survey, a project purchase optimization project was executed using the running order backlog as pilot cases. The outcome was a structured supplier base and improved supplier terms and conditions. In parallel, Scottnordic acted as a facilitator for a new manufacturing footprint and lean processes. The client gained a stronger market position and improved profitability.
Our client had launched a new exit strategy where one of the strategic elements was sourcing optimization. Scottnordic was chosen as the specialist to prepare and develop the sourcing strategy, including a saving opportunity assessment. A deep dive analysis was performed to convert Big Data into fact-based opportunities with a short- and long-term impact. It was crucial for our client that the sourcing strategy was created in a way that could be used in the exit phase with quick improvements, but also to present long-term potential for the new owner. Scottnordic delivered the strategy and kick-started the quick improvements together with Senior Management.
A review of the supply chain positioning indicated a need for insourcing and CAPEX procurement. The client had long been struggling with a bumpy process and had made the decision to invest in new manufacturing equipment to make the process leaner. Scottnordic supported the client in purchasing the equipment from the project launch and CB calculations to final installation and service agreements. Scottnordic headed the project and performed the supplier negotiations and ensured a full alignment and clarification with the stakeholders from production engineering, R&D and finance. The client obtained a leaner setup supported by a strong supplier service agreement.
Our client had a significant spend in steel-related categories and was experiencing large cost fluctuations in daily purchasing. Scottnordic was contacted by the client to improve the situation. A quick analysis of the current state confirmed that the client was lacking transparency and understanding of cost calculations and cost drivers. Scottnordic created a complete cost breakdown analysis of the categories and prepared should-cost sheets enabling fact-based negotiations. To develop the competences of the client's employees, Scottnordic also provided back-end support to the supply chain organization in the new fact-based negotiations with the involved suppliers.
Increased focus on unified reporting helped our client to improve output throughout the main European manufacturing unit. Our client, a strong equipment builder, needed to implement a Performance Management System to build confidence in the strategic decision- making process, and to create a dashboard to support daily operational activities. Scottnordic headed the project, starting with analysis, mutual alignment with stakeholders, development of the dashboard and cross-functional implementation across the manufacturing unit. The implementation also included introduction and training of operators to make empowered decisions.
Maintaining momentum in the execution of the sourcing project was the request from our client after Scottnordic delivered a sourcing assessment and roadmap. Over a 6-month period, Scottnordic acted as an internal resource providing guidance to execute the sourcing project balancing the pace in close cooperation with the COO. Throughout the execution, Scottnordic had the responsibility of performing complete category management projects resulting in clear supplier selections, improved supplier agreements and reduced supply chain cost. In parallel with the execution, Scottnordic provided competence development to the organization, enabling them to take over the project and keep the momentum.
As part of a new strategic direction, our client had made a high-level decision to transform fixed costs into variable costs. Scottnordic was involved in the decision-making process and was then asked to map the best categories to outsource and execute afterwards. The following analysis confirmed the make or buy decision to outsource the large category for steel flanges. In close cooperation with the Production Engineering team, Scottnordic provided the required analysis, supplier qualification, documentation review, supplier negotiations and final implementation. After outsourcing, the client gained the required flexible cost base and obtained a direct cost saving.
Our client's financial performance was unsatisfactory, thus the executive management requested a 360-degree screening of the cost base. Through an analysis consisting of data and interviews with key employees, Scottnordic performed a complete cost survey as enabler and baseline for a planned cost reduction programme. The programme was divided into three main levers: optimization of general purchase, optimization of project purchase and optimization of direct manufacturing cost. To boost performance, Scottnordic initiated and executed quick-win activities within the three levers. The client achieved a stronger financial performance.
A new owner had recently acquired our client and created a new strategic focus on global growth and utilization of synergies across multiple sites. To support the global growth ambition, the Executive Management decided to strengthen product competitiveness through sourcing optimization. Scottnordic performed a detailed spend analysis and opportunity assessment across sites and prepared a step-by-step 3-year implementation roadmap. The roadmap included prioritised saving opportunities and a game plan to transform local purchasing activities into master global purchasing disciplines.
Fragmented use of multiple transportation providers with a high level of operational and decentralised decisions had led to high cost and customer claims within the outbound transportation. Our client required a strategic change in their use of transportation services, and contacted Scottnordic to create a new setup and drive the implementation. A full analysis of inbound and outbound transportation was performed, including an evaluation of existing and potential transportation providers. In the implementation phase, Scottnordic ensured new contracts with selected providers with improved transportation costs and reduced risk. The use of transportation providers has been strategically decided, and corporate governance has been implemented.
The client's owners were developing a new strategic roadmap for the company. One of the strategic pillars was product competitiveness, and Scottnordic was asked to perform a pre-screening project to state the high-level saving potentials within sourcing and procurement. The approach selected to state the potential was based on quantitative data analysis and qualitative interaction with key stakeholders. The high-level saving potentials identified were used in the ambitious corporate strategy developed by the owners and the senior management.
Customer claims and poor performance required a warehouse transformation project. Scottnordic performed a warehouse analysis and identified optimization activities within quality, forecasting and efficiency improvement. To ensure the realisation of the activities, Scottnordic was asked to lead and drive the warehouse optimization project. The project was executed as a cross-functional project as the warehouse was a strategic lever in the entire value chain of the company. The client now has a strong warehouse layout, clear shipping processes from sales to transportation and improved people performance and dedication.