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Supply chain networks in the age of generative AI

Here’s how chief supply chain officers can turn generative AI’s immense potential into higher business performance. Learn more.
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In brief

  • The age of generative AI continues to drive radical change across industries — and the pace is accelerating.
  • Across end-to-end supply chain networks, CSCOs can capitalize on this reinvention of the way people work, access data insights, and generate information.
  • Our report explores the enormous potential in everything from design and planning, to sourcing and manufacturing to fulfilment and service.

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Maturity Model Drives Reinvention

Accenture explores the stages of its supply chain maturity model and the long road that most companies have to reach next-generation maturity. Read more.
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In brief

  • A new economic and industrial context reveals new opportunities for companies, and C-suite leaders must prioritize new capabilities to unlock value.
  • New research reveals a correlation between greater maturity in supply chain network capabilities and strong financial results.
  • To implement and scale more mature capabilities, supply chain leaders should put in place four key enablers of greater maturity.
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Private Equity Case Study 4

Portfolio-wide Spend Assessment Reveals Millions in Savings Opportunities
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Portfolio-wide Spend Assessment Reveals Millions in Savings Opportunities

Client Profile

Private Equity firm with over $12B in committed capital and investments spanning financial services, retail, consumer products, restaurants, software, energy, telecom, and business services.

Client’s Issue

The PE firm’s management team wanted visibility into portfolio spend and high-volume sourcing opportunities.

Our Approach

Using its proprietary spend visibility tool, Insight Sourcing conducted a portfolio wide spend assessment. With the results, a series of projects have recently begun to capture millions of dollars worth of savings.

Categories Addressed

  • Temporary Labor
  • Voice & Data
  • Wireless
  • Small Parcel Shipping
  • Signage
  • Office Supplies
  • Document Management

PROJECT RESULTS: Portfolio-wide Spend Assessment Reveals Millions in Savings

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Private Equity Case Study 3

Established Robust Spend Management Capabilities
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Established Robust Spend Management Capabilities

Client Profile

Private Equity firm specializing in buyout transactions of middle market companies

Client’s Issue

The PE firm’s management team did not have the capabilities to manage spend across its portfolio.

Our Approach

Insight Sourcing deployed SpendHQ for spend visibility and category management tool, to drive portfolio wide strategic sourcing results and compliance for procurement and finance leaders.

Categories Addressed

  • Spend data consolidated & categorized within SpendHQ
  • Procurement Cost-Reduction Roadmap
  • Vendor Fragmentation
  • Category Analysis
  • Sourcing Opportunity Assessment

PROJECT RESULTS: Established Robust Spend Management Capabilities

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Private Equity Case Study 2

Averaged over 817% ROI and over $350 million in valuation improvement
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Averaged over 817% ROI and over $350 million in valuation improvement

Client Profile

Private Equity firm investing in more than 100 businesses with an aggregate purchase price of more than $150B

Client’s Issue

The client was seeking a partner who could provide cost reduction within its numerous portfolio companies.

Our Approach

Insight Sourcing worked with the client performing strategic sourcing activities and was able to achieve an average of 15% – 20% savings per category with an ROI of over 817%.

Categories Addressed

  • Data Center Lease
  • Broadcast Equipment
  • Collection Services
  • Fasteners
  • Freight
  • Print & Fulfillment
  • Fleet Acquisition & Management
  • Outdoor Signage
  • Outsourced Manufacturing

PROJECT RESULTS: Averaged over 817% ROI and over $350 million in valuation improvement

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Private Equity Case Study 1

Delivered Over $12MM in EBITDA Improvement; $100MM in Valuation Enhancement
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Delivered Over $12MM in EBITDA Improvement; $100MM in Valuation Enhancement

Client Profile

Private Equity firm with $7.5B in funds under management

Client’s Issue

The client was seeking a partner to perform cost optimization and strategic sourcing across its portfolio of companies.

Our Approach

Insight Sourcing was engaged to perform the sourcing activities which resulted in over $12M in EBITDA improvement and $100MM in valuation enhancement for the client. The client now integrates each new acquisition under contracts strategically sourced by Insight Sourcing Group for further savings.

Categories Addressed

  • Commercial Print
  • Direct Mail
  • IT Hardware & Software
  • LTL Freight
  • Office Supplies
  • Small Parcel Shipping
  • Temporary Labor
  • Travel (Auto Rental)
  • Uniforms
  • Video Conferencing
  • Dental Supplies

PROJECT RESULTS: Delivered Over $12MM in EBITDA Improvement

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Healthcare Case Study 4

11% Savings on $12.7MM in Expenditures with $1.4MM in EBITDA Improvement
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11% Savings on $12.7MM in Expenditures with $1.4MM in EBITDA Improvement

Client Profile

A $2B provider of outsourced services to the pharmaceutical and life sciences industries

Client’s Issue

The client was seeking EBITDA improvement as well as assistance in redefining business requirements relative to specific categories that they were taking out to bid.

Our Approach

The client engaged Insight Sourcing to conduct a spend analysis to identify strategic sourcing opportunities in select spend areas and a procure-to-pay process assessment across the business units in its Clinical and Communications divisions. The client leverages SpendHQ for ongoing spend visibility and is a member of the Office Supplies Consortium.The client engaged Insight Sourcing, who leveraged a number of nontraditional sourcing methods to ensure continuity and quality of service while still driving strong savings results. Additionally, the client was enrolled in the firm’s Office Supplies Consortium to yield an early quick win for the project.

Categories Addressed

  • Office Supplies
  • Fleet Acquisition
  • Fleet Management

PROJECT RESULTS: 11% Savings in Expenditures with $1.4M in EBITDA Improvement

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Healthcare Case Study 3

Provided Sourcing Advisory & Execution Saving Client Average of 20%
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Provided Sourcing Advisory & Execution Saving Client Average of 20%

Client Profile

A $4B leading multinational biopharmaceutical company that focuses specifically in the central nervous system, immunology, and oncology

Client’s Issue

The client was looking for a partner to assess, advise on, and source a portfolio of strategic categories that included logistics, advertising agencies, events, and market research.

Our Approach

The client engaged Insight Sourcing, who leveraged a number of nontraditional sourcing methods to ensure continuity and quality of service while still driving strong savings results. Additionally, the client was enrolled in the firm’s Office Supplies Consortium to yield an early quick win for the project.

Categories Addressed

  • Logistics
  • Advertising Agencies
  • Meeting Production & Training
  • Speaker Bureaus
  • Office Supplies

PROJECT RESULTS: Provided Sourcing Advisory & Execution Saving Client Average of 20%

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Healthcare Case Study 2

Drove 17% Aggregate Savings & Delivered Significant EBITDA Improvement
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Drove 17% Aggregate Savings & Delivered Significant EBITDA Improvement

Client Profile

$2B provider of home health, hospice, and community care services serving more than 350,000 patients from more than 475 community locations

Client’s Issue

The client sought cost reduction that could provide savings across the wide network of subsidiary companies and locations. Procurement solutions also needed to be scalable due to the company’s frequent acquisitions.

Our Approach

Insight Sourcing performed a spend assessment which identified six categories as potential savings opportunities. In particular, the firm helped the client evaluate and select suppliers that could provide user-friendly solutions for easy access by the various sites.

Categories Addressed

  • Wireless
  • Promotional Items
  • Clinical Forms
  • Document Management
  • Office Supplies
  • Small Parcel Shipping

PROJECT RESULTS: Drove 17% Aggregate Savings & Delivered EBITDA Improvement

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Healthcare Case Study 1

Centralized Category Ownership and Drove 12% Savings
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Centralized Category Ownership and Drove 12% Savings

Client Profile

$2.5B global diagnostics service provider to both consumers and healthcare professionals

Client’s Issue

The client, who was highly decentralized and fragmented due to rapid growth through acquisition, was spending $37MM on temporary labor with over 70 agencies. It identified the need to implement a Managed Services Provider (MSP) and Vendor Management System (VMS) in an effort to centralize temporary labor ownership and better manage temporary labor demand and spend across the many independent functioning business units and locations.

Our Approach

The client brought in Insight Sourcing to facilitate a competitive RFP process to identify both an MSP and the supporting VMS online tool. In order to begin realizing savings prior to the MSP launch date, IS conducted a second competitive RFP process and negotiated reduced rates with about 40 incumbent vendors. This allowed the client to capture immediate savings with the temporary labor agencies while allowing the MSP to fully implement and capture longer-term hard and soft-dollar savings.

Categories Addressed

  • Reduced recruited markups
  • Reduced payrolled markups
  • Discounted long-term markups
  • Compressed wage rates
  • Discounted overtime multipliers
  • Shorter no-cost conversion timeline

PROJECT RESULTS: Centralized Category Ownership and Drove 12% Savings