A Plan that Puts the Pink in the Owens Corning MRO Acquisition Process

The Sourcing Effectiveness Team at Owens Corning has turned MRO acquisition upside down.  Here's how they are doing it across North America; they plan to put it place in their plants around the world.

Author:  Clair Urbain

Try putting 12 people from different areas of a company who deal with MRO products in a meeting room.  On a good day, you'll get 12 opinions on how things should run to assure MRO products are readily available at a price that won't break the bank.  On a bad day, you'll likely have the makings of World War III.

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Global Raw Material Supply Strategies
A global Fortune 200 building products manufacturer, made up of three separate business units, wishes to advance their corporate-wide central purchase agreements. Integrated Strategies introduced the lowest total cost, cross-functional strategy development process (Sourcing Effectiveness Team, SET^© ). The results were:

• +$30 million in annualized purchasing price/cost savings

• Increased planning capabilities and reduced inventory across the supply chain

• Taught SET^© to internal team and were able to sustain commodity strategy development

• Completed in 8 months

Total Supply Chain Strategy Re-design
A global industrial building materials manufacturer developed an in-house supply chain services group to provide expertise in solving logistics and materials management issues. Critical to the success of this effort was participants’ willingness to adopt advanced initiative management tools and techniques. Integrated Strategies provided hands-on, strategic, and tactical initiative management workshops that yielded the following benefits and client improvements in an eight week period:

• Rapid adoption and daily application of a comprehensive initiative management process

• Measurable results attributable to developing, executing, tracking, and communicating initiative plans

• 36% increase in formal initiative planning

• Significant increase in executive sponsorship for the process as well as participant’s initiatives