Success Story - "Cooperative Sourcing (Co-Sourcing)"

Company Description

A Fleet Management company that provides customized total fleet management and leasing solutions for
businesses and government agencies

Company Situation and Problem

• Client organization was growing rapidly and experiencing significant changes
• Data was limited and contained in several legacy accounting and operating systems
• Resources were focused on growth and productivity projects in operating organizations
• Procurement has historically been decentralized and Strategic Sourcing Resources were not available or budgeted
• Client had initially implemented Bullet Trains and internal Strategic Sourcing Initiatives (SSI) with some initial successes
• Experience indicated that additional opportunities existed to reduce costs through more focused Strategic Sourcing Efforts

Paladin Actions & Recommendations

• Paladin reviewed operating statements and identified several spend categories that offered immediate opportunities
• Subject Matter Experts dug into details and worked closely with the Client personnel to complete initial wins
• Additional Spend Categories were identified and additional contracts were renegotiated
• Results were presented to Management and approval obtained to complete Spend Analytics
• Paladin was engaged to be Merchants’ Strategic Sourcing Partner to drive the SSI Program at Merchants Fleet
• Paladin assigned a full time experienced Interim CPO to work with the Merchants’ Organization on the SSI Program
• Additional sourcing projects were identified and completed as the Spend Analytics was completed

Client Results

• A total of 46 projects were identified and completed with savings ranging from 5% to 40%
• Procurement Data was identified, cleansed, categorized, and summarized into a Spend Cube for additional analysis
• Significant favorable impact on operations and credibility established with management team
• Funds approved for a permanent CPO position in 2016