News & Research: Client Successes

Case Study: Supply Chain Integration

ScottMadden worked with a top integrated energy company to help develop a supply chain business plan, with an emphasis on e-procurement.

• The company had recently made sizable acquisitions and wanted to streamline its supply chain practices. Each of the acquired companies had its own supply chain practice. The goal was to determine a common solution
• The company was a charter investor in Pantellos (B2B exchange for the energy industry) and wanted to leverage its use. Data visibility on purchasing spends by category was poor, requiring considerable analysis to determine the best application for Pantellos
• The company sought analytical support, project organization and management skills, and quick knowledge transfer

• Conducted a summary analysis of current spending by type, by period, and by division. Data indicated that spending was in excess of $1 billion annually
• Spent considerable time with Pantellos to understand its real capabilities, its investor framework, and how the two could be optimized for our client in a risk-tolerable approach
• Worked closely with the company to develop plans to achieve synergy savings in processes, develop detailed line-item plans for using Pantellos, and develop and implement performance metrics to help senior management gauge progress

• The organization realized a significant reduction in its supply chain processing and purchasing spending (exact savings amount is confidential)
• Pantellos' utilization increased considerably and the company was able to optimize its position as one of the charter investors