Business Challenge
A leading construction equipment manufacturer wanted to identify the indirect spend of its top competitors in the construction equipment manufacturing industry in China.
Situation
The client wanted to understand the spend patterns and cost savings of its top competitors in China by evaluating their indirect manufacturing spend across different manufacturing locations.
Approach
We conducted in-depth primary and secondary research in China to understand the cost and sourcing strategies of competitors and developed key performance indicators for the evaluation of critical parameters to benchmark the indirect costs.
Impact
Based on our insights, the client was able to identify major cost-cutting areas, leverage its combined purchasing power across categories and drive cost savings, and redesign its indirect spend based on industry standards.
