Case Studies - Supply Chain Management
Leading Insurance Company Expansion Results in $2 Million Savings
A leading health and life insurance company outgrew their corporate headquarters because of personnel increases necessary to
keep pace with an expanding customer base and increasing numbers of services offered. Due diligence determined that it was
strategically and economically beneficial to remain in the same location rather than seeking a new space. They needed a way to
expand their facilities but lacked the internal resources to carry out the critical initiatives necessary to do so.
How We Helped
Acting as interim sourcing manager, RGP helped with sourcing strategies, requests for proposals, price negotiations and
supplier conferences necessary for the construction of 20 additional stories on existing corporate headquarters.
Client estimates our sourcing efforts resulted in an estimated $2 million in savings in construction costs plus increased
comfort, efficiency, capital value from the build out.
Client understands and appreciates our value proposition. Our work spans multiple practices areas, and our relationship continues
to grow. This client currently engages 15 RGP professionals to support ongoing process improvement initiatives. For the past
three years we have been their sole provider of outside professional services.
Efficient Sourcing of Operating Supplies Saves Major Energy Company More Than 10%
A Midwestern energy company converts wind, coal and natural gas into 6,000 megawatts of electricity for 755,000 customers. Management
believed that more efficient sourcing of operating supplies could make a significant contribution to efficiency and profitability. They
evaluated a number of professional services firms and chose RGP to help assess their supply chain and determine whether improvements
could lead to significant savings and efficiencies.
How We Helped
After assessing their supply chain function, RGP provided direction, leadership and expertise to elevate their sourcing to best in class.
- Helped form an SCM steering committee
- Performed a complete inventory reconciliation
- Implemented strategic sourcing
- Developed an alliance management program with key suppliers
- Designed and implemented a Foreman/Admin portal to simplify SAP usage of repetitive tasks
Collaborative strategic sourcing led to a savings in excess of 10% of operating supplies spend.
RGP had experienced and accomplished professionals, including a supply chain CSD team who understood their issues.
Other companies offered guidance but not solutions.