Strategic Sourcing At MEBC, we know the back-end of your supply chain is just as important as the front-end. Consider the following questions: Does your organization understand its procurement spend for raw materials and other services? Are you aware of your market position in the downstream supply chain? Has a sourcing strategy that is consistent with your organization’s power in the market place been defined? If so, do you have the right contract vehicles in place to support that strategy? Does your organization have reliable sources for supply? Are purchase requirements integrated to the rest of your supply chain? MEBC offers significant experience in design, development, and implementation of procurement programs that can effectively drive value in your supply chain. Sample Qualifications Our client, one of the largest municipal suppliers of electric power in the country, engaged MEBC to design and implement a strategic sourcing strategy. Procurement spend was analyzed, industry practices were researched, and a strategy was developed to align the client’s procurement practices with the commercial market place. The implemented strategy aligned the benefits of strategic alliance agreements, long term blanket purchase orders, and spot purchases to the appropriate commodity group segmentation. MEBC assisted the client in defining the strategy, developing requirements and specifications, and engaging the industry in the solicitation process. The result, once fully implemented, will be direct cost savings of roughly $10.5M and inventory reductions of roughly $4M. For the largest provider of live action family entertainment in the world, MEBC was contracted to lead a team of 50 client personnel in developing a procure to pay process to manage over 7,000 vendors. Our team began by reviewing historical data and found a correlation between the client’s cost per show and the percentage of orders made using the formal procurement process. To capitalize on that trend, MEBC created a procurement process that allows client personnel to use POs for as many orders as possible. A strategic sourcing vendor matrix was developed to analyze our client’s spend with their vendors, the corresponding percentage of the vendor’s revenue gained from our client, and the number of alternatives available as a substitute for that vendor. We then came up with specific action plans for each vendor depending on its vendor matrix classification: For vendors with which our client has high leverage and high spend, we have developed an aggressive negotiation process. We have shown our client areas where they should consolidate, in the case of having low spend with many vendors that provide the same good or service. For areas with few alternative vendors, we have developed a process for our client to research and develop alternative vendors. The next phase of this ongoing project will involve the development of bid evaluation criteria, in addition to RFQs and RFPs for strategic alliances. Overall, our motivation is to help our client implement industry best practices in their procurement system. MEBC Capabilities   •   Project Management   •   Business Process Reengineering   •   Implementation Services