Direct Sourcing: Wooden Doors

PROJECT DESCRIPTION

Situation: The project was to reduce cost in the sourcing of ~20,000 wooden doors, a direct category for the client.

Approach: We analyzed the category, by break down it cost structure - identified key cost drivers and configured optimal lots. We conducted a multi-stage RFP and Reverse Auction process with qualified global and Indian suppliers. Then built a multi-objective allocation model to recommend the optimal award strategy keeping in mind - cost, risk and management considerations.

Results: The project resulted in savings of ~20% on the client's baseline costs for the category.

PROJECT DETAILS

Client: A major Indian Infrastructure Player in South India
Duration: 2 Months
Tags: Sourcing

Sourcing: Elevators

PROJECT DESCRIPTION

Situation: The client had very stringent budget targets for buying more than 50 elevators for his multiple high-rise structures for commercial/residential purposes. They were short of their intended budgetary expectations by ~ 15% after having conducted many rounds of negotiations with multiple suppliers. The challenge was for us to try and bridge the gap.

Approach: After analyzing the specs and identifying key requirements, we found that the configuration being considered wasn't the most optimal - with poor elevator utilization. We built a simulation model, considering multiple elevator configuration options for high-rise buildings and optimized on several parameters including utilization, service levels (waiting times), cost and other parameters.

Results: The recommended model provided the client with ~20% savings, while reducing waiting time by ~25% on an average for the end-user.

PROJECT DETAILS

Client: A Large Indian Infrastructure Company in Andhra Pradesh
Duration: 2 Months
Tags: Sourcing, Optimization
Simulation model

Commodity Sourcing: Glass

PROJECT DESCRIPTION

Situation: The Client had a significant glass requirement for his multiple high-rise residential buildings, all of which had a significant glass facade. They needed help in configuring the right type of glass (at an optimal cost).

Approach: After researching and evaluating more than 80 available glass options from major players in the market, we identified performance parameters (heat absorption, light allowance, cost) and built a model to help optimize on the 3 parameters.

Results: The model helped the client identify the glass model with the right parameters for their project, at optimal cost points.

PROJECT DETAILS

Client: A $300M Real Estate Company in Hyderabad
Duration: 1.5 Months
Tags: Sourcing, Commodity Management
Glass : Optimal Configuration Analysis