Reduce Indirect Spend By Enite Team

Situation

A mid-market private equity firm asked Enite to review and reduce all indirect spend associated with operations of a manufacturing portfolio company.

The objectives were to:

• Baseline all indirect spends such as temporary labor, corrugated packaging, office supplies freight, travel and entertainment
• Conduct market analysis
• Document and evaluate strategic procurement issues
• Provide sourcing options and a go-to-market strategy for selecting new vendors
• Negotiate and construct new vendor relationships with service line agreements

Approach

Enite completed the effort using a vendor selection process during a 3 month timeline:

Deliverables

• Detailed cost analysis of all vendor options
• Cash flow impacts by vendor
• Interview notes and insights

Outcome

Enite delivered all items in scope of the project the resulted savings were:

• 21% Average savings on hotel stay across each region
• 10% Average savings on car rental
• 5% savings for temporary labor across each region