A global aircraft manufacturer had secured new production contracts, but systemic issues throughout its supply chain threatened to keep it from meeting its new (or even current) customer orders. Bain suggested a new organization structure, category management approach, and contracting strategy, which helped the company improve its strategic decision making, reduce the number of suppliers, increase the number of long-term vendor contracts, and reduce buying-unit headcount. These actions trimmed more than 7% off its overall procurement costs. Equally important, the company was well-positioned to meet production demands.

DialCo had taken steps to improve procurement processes by consolidating warehouses and reducing inventory, but more work was necessary. Bain helped the client establish and quickly implement a strategic sourcing plan to increase buying power and lower costs. The result: more than $150 million in identified cost savings.