Under pressure to achieve objectives despite a cost-reduction mandate, the chief procurement officer at a metals and mining company needed to capture savings and spur innovation from suppliers. Gartner provided advisory support for hosting a Supplier Innovation Day that yielded nearly $8 million in savings from top suppliers and helped increase trust and partnership between the company and its suppliers.
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Mission-critical priority
The chief procurement officer was charged with achieving 25% greater savings in 2020 to combat the effect of tough economic conditions on profitability.
How Gartner helped
The company leveraged Gartner advisory support to conduct a Supplier Innovation Day. Our coaching on supplier segmentation, governance and continuous improvement helped to define the supplier relationship management strategy, while the Voice of Supplier diagnostic enabled prioritization by identifying which suppliers viewed the company as a “Customer of Choice.” Our automated supplier scorecard platform measured supplier performance accurately.
Business impact
With Gartner support, the client gained the following benefits:
- At its Supplier Innovation Day, the company was offered premium products by its suppliers at standard product prices, leading to significant cost avoidance and equipment needing to be replaced less often.
- The Supplier Innovation Day yielded nearly $8 million in savings from the company’s most strategic suppliers and helped increase trust and partnership between the company and its suppliers.
Industry:
Metals and mining
Revenue:
$1 billion — $3 billion
Employees:
1,000+
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