Manufacturing Companies

Strategic Sourcing for Manufacturers

In today’s increasingly interconnected and interdependent global marketplace, manufacturers face an ever-growing list of challenges to remain competitive.

To be successful, many large scale manufacturing operations struggle to balance the more task-focused needs of the production process as well as the financial planning, oversight and control requirements needed in any major modern business organization.
Since 1992, Corcentric professionals have worked with some of the world’s leading manufacturing companies to help them optimize their spending, locate reliable and economical sources of raw materials, source products and components for their manufacturing processes, and develop ways to make their operations more efficient and cost-effective.

Our strategic sourcing services for manufacturing companies go beyond strictly cost reduction services. We can assist in:

• Low-Cost Country Supplier Identification
• Procurement of Raw Materials
• Procurement of Indirect Spend Items
• Identification of Qualified Suppliers in Near Shore Locations, such as Mexico
• Improving Collaboration with your Suppliers
• Improving Lead Times
• Customs and Logistics
• Identification and Build Out of Warehousing Locations
• Acquisition of Capital Equipment
• Reducing Maintenance Costs of Capital Equipment
• Identification of Quality Auditing Partners
• Improving Payment Terms with your Supply Chain Partners
• Inventory Control

The cost reduction services we have provided to manufacturers span the full range of business operations. For example:

• Our professionals worked with the banking and treasury services area of a major manufacturer to review all payables and receivables processed through their department to identify possible cost savings and to source more cost-effective service providers in categories involving checking fees, interest rates, direct deposits, reporting fees and more
• Corcentric worked with a manufacturer of containers to evaluate projected cost increases for materials involved in production and developed a strategy to negotiate significant savings that mitigated and offset much of the anticipated increases.
• For a chemical manufacturer, Corcentric developed a strategy that enabled the company to realize major cost savings over the long-term by adding a new filtration infrastructure to its existing system. The approach enabled the company to purchase less expensive chemicals with a lower level of purity – but then filter the chemicals through the new filtering system to achieve the same high level of quality. Though there was an initial cost to create the new filtering system, the investment paid off within six months and then began accruing long-term savings.

All together, our cost reduction professionals have provided oversight in every project area; developing sourcing strategies, performing negotiations, and assisting in the development and implementation of best practices throughout the scope of our manufacturing clients’ needs. All told, we have produced an average 18% savings in every category that we have sourced.