Supplier Consolidation and Commodity Management

Customer Issue

Customer with 250+ label suppliers in North America

  • Poor quality and delivery metrics
  • No visibility of annual purchase value (APV) and demand
  • Rising costs across portfolio
  • Complexity cost: Excessive part numbers and specifications to manage
  •  

The AWT Solution

Commodity Management Contract – Appointed “Integrated Label Supplier Manager”

  • Assigned all commodity POs
  • 100% plant audits for all customer facilities
  • Re-source or in-source labels from poor suppliers
  • Part review and consolidation
  • Spec review and consolidation to a single master spec
  • Value engineering – material and design optimization

Customer Benefits

Cost Savings

  • 8% average annual savings for over 10 years
  • $2.2 million, 10 year cumulative
 

Productivity Gains

  • Eliminated >200 suppliers oversight
  • Spec consolidation from 25 to 1
  • Quality improvement >60%
  • Quality system compliance with suppliers meeting IATF or ISO requirements
  •  

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Collaborative Forward-Thinking Innovation

A global point-of-care (POC) diagnostics startup was preparing to launch an innovative new product but faced a critical production challenge. Their blood diagnostic tests featured a unique disc design, incorporating various sealing tapes and labels that required precise placement. The pressing question: could they maintain tight tolerances in positioning without triggering an unintended chemical reaction during the production process?

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Customer Issue

Customer with 250+ label suppliers in North America

  • Poor quality and delivery metrics
  • No visibility of annual purchase value (APV) and demand
  • Rising costs across portfolio
  • Complexity cost: Excessive part numbers and specifications to manage
  •  

The AWT Solution

Commodity Management Contract – Appointed “Integrated Label Supplier Manager”

  • Assigned all commodity POs
  • 100% plant audits for all customer facilities
  • Re-source or in-source labels from poor suppliers
  • Part review and consolidation
  • Spec review and consolidation to a single master spec
  • Value engineering – material and design optimization

Customer Benefits

Cost Savings

  • 8% average annual savings for over 10 years
  • $2.2 million, 10 year cumulative
 

Productivity Gains

  • Eliminated >200 suppliers oversight
  • Spec consolidation from 25 to 1
  • Quality improvement >60%
  • Quality system compliance with suppliers meeting IATF or ISO requirements
  •