Strategic procurement for manufacturers.
Material cost is set by the categories you source, the suppliers you keep, and the terms you sign. We analyze where your spend goes, build a strategy for each category, and negotiate agreements with suppliers that can hold price and delivery.
- 8%lower material cost at year-end 2025, while tariffs drove double-digit material and manufacturing cost increases
- $19Mannual supplier spend managed
- $225Ksaved, 27% lower cost, with the first U.S. key supplier for a high-volume commodity group
From our founder’s operating roles. Not client results.
Where strategic procurement loses money.
Material cost leaks before anyone negotiates: spend nobody can see, buying by the order, price without total cost, and agreements that lapse.
Spend nobody can see
Purchase history sits in the ERP under inconsistent supplier names, part numbers, and commodity codes, so no one can say what a category really costs.
Buying by the order
Each requisition is quoted and placed on its own. Volume that could support an agreement is split across buyers, suppliers, and months.
Price without total cost
Awards go to the lowest unit price, while freight, duties, inspection, rework, and late deliveries are paid somewhere else in the budget.
Agreements that lapse
Pricing, delivery, and quality terms expire or are never written down, so every increase is negotiated from a weak position.
How we build a strategic procurement plan.
Every recommendation traces back to your own purchase history and is ranked by savings potential and supply risk before any supplier is contacted.
- Data
- Two to three years of purchase order lines and receipts from your ERP
- Spend cube
- Spend by category, supplier, part family, and buyer, with supplier names and commodity codes cleaned
- Segmentation
- Kraljic segmentation by spend and supply risk, so each category gets the right approach
- Cost basis
- Total cost of ownership: unit price, freight, duties, inspection, quality cost, and inventory carrying cost
- Should-cost
- Material, process, and overhead build-up for high-spend machined, fabricated, and cast parts
- Priority
- Opportunities ranked by savings potential, effort, and supply risk
- Agreements
- Fixed-frame contracts, long-term agreements, and inventory stocking agreements
- Compliance
- ITAR, FAR/DFARS, and BAA requirements carried into the sourcing plan
- ERP
- Our founder has worked in Infor LN, Shoptech E2, and Fishbowl
How it works.
Spend analysis
Clean and classify your purchase history into a spend cube, then segment every category by spend and supply risk.
You receive: Spend cube and category segmentation
Category strategy
Set a strategy for each priority category: re-source, consolidate, add a qualified U.S. source, or renegotiate with the current supplier.
You receive: Category strategies with savings targets and risks
Source and negotiate
Issue RFQ packages, level the bids on total cost, and negotiate with a written plan for each supplier.
You receive: Award recommendations and negotiated terms
Contract and sustain
Put long-term agreements and fixed-frame contracts in place, then track price, delivery, and quality against them.
You receive: Signed agreements and a savings tracker
From operating experience.
- 8% lower material cost at year-end 2025, while tariffs and geopolitical pressure drove double-digit manufacturing and material cost increases.
- 27% lower cost, $225K saved, by onboarding the first U.S. key supplier for a high-volume commodity group.
- Up to $19M in annual supplier spend managed.
Our founder delivered these results while running supply chain organizations between 2017 and 2026. They are operator results, not client results. See all results
What you receive.
- Spend cube by category, supplier, and part family
- Category segmentation and opportunity ranking
- Category strategies for your highest-spend categories
- RFQ packages and bid leveling on total cost
- Negotiation plans for key suppliers
- Agreement terms for price, delivery, quality, and contract flow-downs
- Savings tracker measured against an agreed baseline price
Standards, contracts, and systems our founder has worked within
- Spend cube
- Kraljic segmentation
- Total cost of ownership
- Should-cost
- ITAR
- FAR/DFARS
- BAA
- Infor LN
- Shoptech E2
- Fishbowl
Strategic procurement questions.
What is the difference between strategic procurement and purchasing?
Purchasing places orders against today’s requirements. Strategic procurement decides which suppliers you buy from, on what terms, and for how long, using spend data and category plans. It sets the conditions purchasing works inside.
Where do strategic procurement savings come from?
Often from the supplier base you already have. Consolidating volume, renegotiating on total cost, and putting agreements in place come first. We add new sources where there are gaps or single-source risk.
How do you measure procurement savings?
Against a baseline price agreed with you before sourcing starts, such as the last price paid or a weighted average over a set period. Cost avoidance on quoted increases is tracked separately so the savings figure stays honest.
Can material cost come down while tariffs and market prices are rising?
It can. In our founder’s operating role, material cost fell 8% at year-end 2025 while tariffs and geopolitical pressure drove double-digit manufacturing and material cost increases.
Do you need access to our ERP?
We need an export of purchase order lines, receipts, and supplier records. Our founder has worked in Infor LN, Shoptech E2, and Fishbowl, and we can work from a standard export of other systems.
What does a strategic procurement engagement cost?
We send a short written proposal with the scope, the outcome, and the fee after a 30-minute call.
Start with a 30‑minute conversation.
Describe what you buy and where the problem is. We reply to every message directly.