Company Overview: $1.5B Aviation operator and repair center

Process Improvement

Performance Issue

  • Global Spend: $20M on outbound freight
  • Total Suppliers: 550 Suppliers in 35 Countries
  • Level of Spend Information Detail: Manual and GL Level only
  • Invoices Processed: 50,000 per year
  • Resources Allocated: 5 to process freight invoices

Before

# of Suppliers = 550

# of Invoices = 50,000

Improvement Approach

  • Consolidate Global Spend
  • Automate GL Coding
  • Remove Touch Points
  • Monitor compliances
  • Capture detail in the system
  • Reduce the number of suppliers

Results

  • $4.8M (24%) per year – Reduction in Freight Cost
  • $2M per year – Expect additional yearly cost savings due to warehouse & shipping rationalization
  • $2M per year additional savings identified – Based on $10M spend for inbound freight
  • $160K in Savings – Removal of 4 Employees as a result of improved efficiency

After

# of Suppliers = 15

# of Invoices = 180