Success Story - "Flexible Intermediate Bulk Containers"

Company Description

$1.1 Billion Diversified Mineral Company Serving U.S. and Canada

Company Situation and Problem

Flexible Intermediate Bulk Containers (FIBCs) were used for diverse purposes in 6 locations across the U.S. and Canada and had not been sourced in several years.

• Previously, sourcing was completed locally or regionally rather than on a company-wide basis.
• One site had recently qualified a new supplier for their own FIBC needs.

Paladin Actions & Recommendations

Working closely with the Client, Paladin documented company-wide spend and critical requirements for FIBCs.

• Paladin then led a cross-functional team through all phases of the sourcing process, including potential supplier identification (domestic and foreign), RFI completion, pre-bid and e-Auction, using an e-sourcing tool.
• Fleet specifications were modified to delete features and options not required by the Client‘s operations.
• The team narrowed the potential supplier field after each step of the process.
• Finalists participated in an e-Auction which led to incremental savings over pre-bid pricing.
• Paladin developed and executed the supplier/product accreditation plan.

Client Results

Significant double digit savings plus:

• FIBC specification documentation with standardization.
• Greater internal communication between various FIBC users at company sites.
• Benefits leveraged across the entire company, rather than at a local level.
• Increased awareness of, and willingness to work with, Client’s Centralized Sourcing Organization.
• Consolidated RFI, Pre-Bid and eAuction reporting generated by e-Sourcing tool.
• Robust accreditation process across all sites and dedicated supplier contact.