Unlocking $782K in Cost Savings in Just 4 Weeks: How We Did It

A few months ago, we had a client who had all the right tools and the mindset to harness technology, yet they were missing a major opportunity—nearly $782K in savings slipped through the cracks.

They had it all: an ERP, BI tools, management teams, advanced decision-making frameworks, and stacks of office documents. And still, something wasn’t clicking.

Sound Familiar?

This client was doing so much right, yet critical cost savings and efficiency gains were falling through the gaps. Their team was frustrated, seeking a better way to manage the business and capture missed opportunities.

In just 4 weeks, we helped them uncover $782K in savings, de-risked their supply chain, and gave them a new way to think about resource management.

Here’s how we did it.

1. Mapped 125 Product Lines to Uncover High-Dollar Contracts

We reviewed and analyzed 125 unique product lines, pinpointing contracts that were overvalued and high-dollar.

What We Found:
A market analysis showed they were paying 25% more than the market average.

2. Developed a Strategic Materials Acquisition Plan

We created a robust materials acquisition strategy that aligned high-quality suppliers with targeted process improvements to match the client’s specific needs.

The Real Game-Changer? The Process

It’s not just about knowing what the business needs—it’s about knowing what the business can improve. Sometimes, it takes a first-principles approach to fully understand the gaps and inefficiencies holding you back.

Here’s How We Approached It

1. Identify the Supply Chain Structure
Instead of rushing to cut costs, we started by mapping out the current supply chain to understand what’s critical, core, and nice-to-have.

How We Did It:

• Identify key products and suppliers: We zoomed in on materials, pricing, supplier relationships, and the reasons behind each choice.

• Categorize components: Classify each as critical, core, or basic—sorting needs from nice-to-haves.

2. Data & Process Mapping

Next, we identified how decisions were made and what data was driving them. This helped us clarify the gaps in data accessibility and decision-making.

How We Did It:

• Locate data: We mapped out all the places information lived, from software systems to shared drives.

• Map the process: Documented each step in the decision-making process, identifying redundancies and potential delays.

3. Leverage Existing Processes
Then, we honed in on high-cost items in basic and core product lines to conduct a competitive analysis for alternative suppliers.

How We Did It:

• Define what can change: We selected high-cost items that were ripe for competitive analysis.

• Conduct competitive analysis: We evaluated the market for potential new suppliers and alternative pricing.

4. Trim the Process Fat
We identified steps in the process that didn’t add value to the materials acquisition strategy. Could we streamline or remove any steps?

How We Did It:

• Detailed outline: Reviewed each step—does it slow decision-making? Could it be improved or removed?

• Define a new process: Created a streamlined process with clear communication points for stakeholders.

5. Execute, Execute, Execute
With all the information in place, we moved to action. We ran the new process through several product categories, targeting quick wins and high-impact savings.

How We Did It:

• Identify new suppliers: Located new suppliers in each category and initiated negotiations.

• Fast RFP process: Used a templated RFP, with minimal adjustments, to send proposals to multiple suppliers quickly.

• Supplier conversations: Analyzed responses based on price, terms, and logistics, aligning the best options with business goals.

Want to Unlock Savings Like These?

If this process resonated with you, let us know! We’d love to hear how your resource management efforts are going. Reply here or drop me a DM on LinkedIn—I’m all ears.

Ready to Dive In?

At Prosperous AI, we can do this entire process for you in just 30 days. You’ll get a full execution plan that empowers your team to capture missed savings and elevate your supply chain.

Grab a Meeting with Us Now >>