Initial situation:
- Global manufacturer with high production costs concentrated in Western Europe.
- Supplier base heavily dependent on high-cost countries, undermining competitiveness.
- Significant cost pressure and urgent need for strategic procurement realignment.
Our approach:
- Established a cross-functional PMO to manage 100+ Best Cost Country (BCC) sourcing projects.
- Identified and qualified new suppliers in China, India, Eastern Europe, and Turkey.
- Structured implementation: supplier scouting, technical qualification, testing, SOP launch.
- Deployed digital audits and risk management measures during COVID-19 constraints.
- Coordinated detailed phase-in/phase-out plans to ensure seamless supply chain transitions.
Results:
- ~€28 million identified annual cost savings, delivering substantial cost reductions.
- €130 million purchasing volume successfully transferred to BCC suppliers
- 182% increase in BCC-related savings within two years.
- Strengthened supply chain resilience through global diversification.
Conclusion:
The best cost country sourcing initiative delivered double-digit million savings and significantly enhanced global competitiveness.
