Sourcing Assessment Identified Category Level Suppliers to Establish North American Supply Chain for the NA Market

The Challenge

A leading designer and manufacturer of medical equipment recently acquired a competitor and wanted to consolidate the manufacturing sites. They chose the acquired company’s site as the final location. The company needed help to move its existing production facility. The company brought TriVista on to help consolidate the manufacturing sites.

Our Approach

• Analyzed the current state, including the category spend profile and existing supply base
  • Assessed the detailed costs of the current state
  • Identified key cost drivers by category
• Reviewed the status of current sourcing efforts and organizational strategy
• Developed robust category strategies to guide the resourcing process
• Identified the target scope for resourcing activities, including SKUs and categories
• Researched the supplier landscape, conducting market surveys and assessing competitive edge, global presence for manufacturing & distribution, growth & innovation plans, industry knowledge, and quality & regulatory knowledge
• Developed a Candidate Supplier Evaluation Scorecard to facilitate the down selection process
• Developed and distributed an RFI package to a list of candidate suppliers
• Performed the initial down selection
• Developed and distributed an RFQ package to the short list of final candidate suppliers
• Participated in supplier site visits with the final candidate suppliers
• Led cross-functional Final Supplier Selections
• Facilitated pricing and contract negotiations, as required

The Results

Established an alternative supply base to:

• Alleviate geopolitical risk
• Diversify existing sole sourced position
• Mitigate supply chain disruption
• Support full North American market (in future-state)

Key Deliverables:

• 24% reduction in material cost across 175 SKUs
• 75+ suppliers identified and evaluated throughout RFI, RFQ, and down selection process
• 7 unique suppliers awarded business