A full-service utility with multiple divisions and close to 1,000 suppliers sought to obtain a clear view of cost drivers and a comprehensive cost breakdown of utility-scale transformers. The client’s complex operations made this a daunting task, hindering supplier negotiations and spend management.
GEP collaborated with the utility to understand the production process, develop customized cost models and generate baseline prices through cost estimation. As a result of GEP’s insights, the client was able to improve negotiations on high-spend categories and identify cost-saving opportunities in the sourcing process.
Supply chain and procurement professionals who want to understand what really drives costs and increase their bargaining power in negotiations with suppliers should consider this case study essential reading.