Benchmark Rapidly Reduces Manufacturer's Outside Spend by 16%
A $500 million manufacturer was struggling with an 80% collapse in market demand. Prior to engaging Benchmark, management had already taken aggressive action by reducing headcount and closing plants.
Despite these efforts the business still had a high cash burn rate. A two-week diagnostic identified an opportunity to rapidly reduce spending outside the company. Headcount reductions had left the company with insufficient staff to capture the savings in a timely fashion.
Management asked Benchmark to essentially act as an interim purchasing department. Benchmark added a dozen people to the internal purchasing team. Together we delivered a 16% spend reduction over the course of several months. We eliminated outside spend where appropriate and renegotiated long term supply contracts at reduced rates in other cases. Significant cash savings from the project became visible within eight weeks of launch.