Cost Reduction success stories

Cost Reduction Projects improve bottom line profits for businesses and create budget surpluses in government agencies. Projects are chosen after completion of data analytics and careful discussion of sacred cows, recent projects, and probability of implementation success. Projects will never create negative impacts on Safety, Quality, or Environment.

Consolidated Shipping

Situation: Shipments from Europe were booked when available at suppliers. Less than Container Load (LCL) shipping is very expensive and problems at customs often can delay delivery by 2 to 4 weeks.

Plan: Work with current Logistics company to consolidate shipments into Full Container Load (FCL) weekly shipment. 

Implemented: Current Logistics company could not consolidate the materials, so I contacted new Logistics companies for quotes. After thorough review, I picked on that fit best and tested three shipments. 

Results: $600k annual reduction in spend. New model reduced shipping costs by 40% and delivery time by 2 weeks.
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Shipping Crate Redesign

Situation: Shipping crate design was in use for several years. It was a solid wooden crate with significant OSB content. Price of OSB was rising quickly.

Plan: Work closely with Shipping team, Engineering, and Supplier to redesign shipping crates. Project could not impact safety or quality. During project, we would test samples and provide feedback to supplier. 

Implemented: Supplier created several samples based on my feedback for changes.  I selected the new design for skeleton crate with no OSB. After testing for 3 months, I switched to the new design.

Results: $250 annual reduction in spend. Final design reduced cost of crates by 60%,
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Supplier Consolidation

Situation: Janitorial and Packaging supplies purchased from 9 different companies.

Plan: Consolidate the volume with 2 suppliers to create more negotiating leverage on price and payment terms.

Implemented: I negotiated with 2 suppliers that wanted to be partners. These suppliers helped me to reduce the variety of items that we used. Consolidation of items and suppliers also reduced the number of shipment and invoice transactions. 

Results: $30k annual reduction in spend. Suppliers reduced janitorial and packaging costs by 30% and increased days payable by 30 days.
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These are a few more projects that we have completed