A Procurement Transformation Delivers $43 Million in Sustainable Savings

A global medical technology leader was underperforming peers across growth, market share, innovation, and cost efficiency. Although the company was positioned in attractive markets, MedtechCo* faced mounting pressure to close performance gaps and strengthen its cost base. Spending across IT, logistics, HR, professional services, travel and expense, and other categories lacked the governance, sourcing discipline, and category management needed to deliver lasting value. Indirect procurement offered a significant untapped opportunity. Together with Proxima, our procurement consultancy subsidiary, we helped MedtechCo transform its procurement systems and capabilities, delivering substantial savings and embedding a framework strong enough to sustain impact.

From collaboration to transformation

Bain and Proxima worked closely with MedtechCo to conduct a broad accelerated performance transformation (APT), identifying ways to improve performance and reduce costs across the business. From the start, the engagement was designed around a distinctive collaboration model: We advised on strategic direction, integrated the program in support of the company's broader transformation agenda, and led select policy-driven initiatives. Proxima served as a true implementation partner, managing execution across defined initiative workstreams, with full accountability for delivery outcomes.

This hybrid teaming model was grounded in clear ways of working. Joint problem framing and work planning aligned both teams on priorities, sequencing, and decision points from the outset. Clear ownership boundaries helped avoid duplication, enabled faster execution, and ensured that issues were escalated quickly when needed. We worked shoulder to shoulder with MedtechCo rather than from a top-down advisory posture, maintaining continuous communication across all stakeholders. The result was a seamless, high-trust collaboration that combined our strategic oversight and results orchestration with Proxima’s operational depth and sourcing precision in support of MedtechCo’s transformation goals.

Outperformance unlocks the next phase

Phase one initiatives across IT, logistics, HR, travel and expense, and additional indirect categories exceeded initial expectations. Over 12 months, the program delivered $43 million in sustainable savings against a committed target of $30 million, exceeding the target by 43%. Equally important, the engagement transferred analytical rigor and sourcing execution capabilities directly to the client team, ensuring that the gains would endure.

A reengineered IT services spending model achieved a 43% cost reduction through contract redesign, shoring strategy, and skills reconfiguration. The team also worked together to deliver a rapid cost takeout across multiple categories, including an accelerated air freight sourcing effort that achieved three times the original savings target. Redesigned spending policies across professional services, promotional items, and travel and expense helped embed sustained value delivery. We also worked with MedtechCo to demonstrate best-in-class sourcing through a triple-cycle approach that accelerated capability building within the procurement organization.

Building on the success of phase one, the joint team conducted a detailed opportunity assessment, identifying up to $170 million of additional value across more than 150 discrete opportunities. Key steps included:

• Partnering with procurement and business stakeholders to validate and prioritize the highest-confidence opportunities.
• Supporting the indirect procurement leadership team by embedding savings into the forward budgeting process.
• Developing a clear roadmap and scope for the next phase of work.

Based on demonstrated impact, MedtechCo approved a six-month phase two engagement focused on a combination of savings delivery, long-term category strategy resets, cross-functional alignment, and procurement capability building.