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 Results - Procurement - steel   

Context / scope of project : EAF steel maker with downstream rod, bar and wire operations asked PIP to come and review its operations. The diagnostic team identified more than $40m of potential savings covering procurement, operational efficiencies, maintenance practices, go-to-market strategies, line rationalisation and cost controls. Many of these elements were done internally by the client team but PIP were engaged to deliver the procurement savings and up-skill the client team.

PIP and client achieved:

The team tackled 41% of the total spend and delivered an average of 13% reduction in spend across this group.






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What we did:

Total value of ownership driver trees

Reverse engineered suppliers’ costs

Consolidated spend

Identified alternative vendors (including insourcing)

Reviewed bundled and unbundled offerings

Synthetic pricing

Root cause analysis to reduce usage

Identified substitutes

Tenders, multi-rounds negotiations, open book negotiations


 
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