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Global Sourcing
Global Sourcing
Global Sourcing
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
There is no doubt that the outsourcing market will grow in 2004 and continue to do so
well into the future. Many multi-national companies such as General Electric, WalMart, Procter & Gamble, Siemens, and Nokia have moved part of their operations to
low-cost countries such as China and India. How have these companies successfully
adopted this new movement? While the process is complex, there are steps and
resources available to make it run smoothly and quickly, resulting in the identification of
immediate cost savings.
While there is no master approach, the bottom line is that businesses across the globe
are becoming increasingly interconnected, and are experiencing excellent results with
global sourcing. Most companies that have been successful utilize outside resources
that have the experience and knowledge base to guide them through potential issues
and deliver immediate results.
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
Strategic Sourcing - Companies may seek strategic sourcing, which in its purest
form, involves optimizing supplies that are the basis of the business success. Such
supplies are prized by the buyer because they improve performance and provide
value. Low-cost sourcing is attractive when these supplies are labor-intensive and
multiple suppliers exist.
In effect, global sourcing allows a company to capitalize on low production costs without
having to actually own the supply network in such countries. In this way, companies can
avoid the investment risks in such countries, but at the same time, enjoy the production
benefits.
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
1995
Services:
Global Sourcing Strategy and Execution
Indirect Procurement Strategy
Global Supply Chain Restructuring
Business Process Outsourcing Strategy and Execution
Inventory Planning & Control
Operations Integration & Reorganization
Systems Evaluation and Selection
Process Improvement
Finance & Internal Controls, including Sarbanes-Oxley
Expertise/People:
Reese Partners consultants blend extensive, hands-on experience with high-level
strategic thinking.
Our professionals average more than 20 years of industry
experience, and have worked and lived in over 60 countries around the globe.
$60 million in estimated cost savings over three years after implementing a
strategic sourcing initiative for a $1 billion consumer products company.
Increase sourcing volume from less than $100 million to $450 million at first cost
for a multi-billion dollar full-line department store.
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai
Case Study
Reese Partners was retained by a $200 million consumer products company to
review their global operations and customer interface. We evaluated existing processes
in the US, Hong Kong, Europe, and Canada across Sales Productivity, Product
Management and Development, Global Logistics, Inventory Management, and other
G&A. Within 8 weeks, we identified opportunities to save more than $5 million per
year. The initial objective outlined by the investors was to realize more than $2 million in
sustainable performance improvement opportunities. After Phase I, EBITDA improved
in excess of $7 million, and cash flows improved by $14 million.
What our clients say
Reese Partners helped open our eyes to new opportunities in which to improve our
current purchasing practices that could save us significant amounts of money. Reese
Partners got the ball rolling and helped us realize that domestic sourcing, while
comfortable, is not the most desirable sourcing solution for us. Now, rather than just
talking about it, we are doing something about it. We are making a huge transformation
within our company - a transformation expected to result in savings on some
components of as much as 30-40 percent.
Neil Gambow
President, Midland Manufacturing
Reese Partners helped Huhtamaki realize significant cost savings of over $2 million a
year. The expertise provided by Reese Partners was superior to what we could have
done internally, with respect to both quality and time. They brought an objective view
that couldnt be replicated internally, worked within a tight timeline and presented what
made the most sense given both current and future business trends.
Thomas P. Wilkas
Former Executive Vice President and Chief Financial Officer, Huhtamaki Americas, Inc.
2005 Reese Partners 303 West Erie Street Suite 310 Chicago IL 60610 312.397.3100
Chicago Shanghai Mumbai