Ebit worked with a significant manufacturing business which has 6 major and 22 minor sites.
The client did not have a standardised process, or any price lists or parts lists. This meant that the same items were purchased from multiple suppliers across multiple sites at varying prices and via multiple engineers.
With more than 50 suppliers for MRO, just the top 5 represented 80% of spend. There were more than 4000 purchase orders raised per year.
Ebit engaged with suppliers and provided an RFI overview.
Categories included: Lubricants, production consumables, production tools, engineering tools, engineering consumables (fasteners, fixings, pipe fittings), fluid power/pneumatic/hydraulic components, transmission (belts, pulleys, sprockets, bearings, seals), filtration, knives/blades.
- 10% savings realised on purchasing and resultant operational efficiencies.
- 25% reduction in EOM parts conversion.
- 7% reduction on product substitution.
- Single supplier selection to prevent rouge spending and ensure supplier quality levels.
- Substantial reduction in invoice numbers, switching to EDI invoices direct to the client’s account system, reducing internal resource.
- Energy audits introduced to ensure that scheduled maintenance schedules are correct and to check if machine settings need to be changed.
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