Sourcing Strategy Development and Execution

The Gibb River Group prides itself in developing innovative sourcing strategies, which deliver results beyond what is deemed possible.  Over the past decade, our team has worked with dozens of clients helping them reduce the costs of purchased goods by hundreds of millions of dollars.  Our Total Cost of Ownership (TCO) approach ensures we find savings not just in the purchase price but across the whole supply chain, including logistics, warehousing, inventory management, quality and other areas.

Not only do we analyze our clients’ supply markets in depth, but we coach our clients on using facts and data to maximize the effectiveness of negotiations.  Finally, if requested, we will also ensure that all key business / commercial terms agreed in negotiations are incorporated into the final supply contract. Our work in this area is not meant to replace a legal review of supplier contracts, of course.

In summary, The Gibb River Group’s effectiveness in sourcing engagements is based on its partners’ unwavering commitment to the client’s success and on the following elements:

  • Thorough understanding of the Total Cost of Ownership of a category, covering the spend baseline and all related costs such as transport, logistics, quality and inventory
  • In-depth analysis of the relevant supply markets, including low-cost-country sources
  • Structured Request for Information (RFI) and Request for Quotation (RFQ) processes
  • Rigorous analysis of suppliers’ RFQ data
  • Thorough client preparation for supplier negotiations, looking for win-win outcomes
  • Client coaching throughout the negotiations
  • Cooperation with clients’ legal departments to ensure commercially negotiated terms are reflected in the final supply agreement
  • Supplier development, where appropriate
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Select Success Stories

Strategic Sourcing

Developed, helped negotiate and implement an innovative, industry-defining fuel sourcing strategy for a client in the aviation industry, which improved the client’s profitability significantly. (USA, Europe)

sourcing2

Worked with a client across multiple geographies to meet aggressive savings targets for SG&A purchased goods, “indirects” (Europe, Australia / New Zealand)

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