Exceeding targeted cost reductions through strategic sourcing

Following an acquisition, an international engineering group specialising in aerospace systems wanted to integrate its businesses in the US and Europe to drive cost reductions across the new group.

Core Partners conducted a spend analysis and a supply chain and synergies assessment. From these we developed a long-term plan to deliver significant cost reductions to the business with £4.8m of targeted cumulative savings by the second year of the integration.

Working closely with the senior team, we developed sourcing strategies over a number of spend categories to reduce total acquisition costs. We also established a new operating framework and key performance indicators to monitor performance, and supported the new Sourcing Director and his team to apply this framework and deliver the required savings.

The new programme exceeded the original targeted savings, delivering savings of £3m across the UK and US businesses in the first year, and projected cumulative savings of £6m in the second year.