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Case Study: Chilean forestry company

Strategic Sourcing

Customer

Chilean forestry company that manufactures, markets and distributes pulp and wood products.

It has a unit dedicated to the sale of boxes that includes the service of their automatic assembly, aimed especially at customers in the fruit and vegetable, industrial and salmon markets.

Challenge

The automatic assembly unit has shown losses due to poor planning of its operation, low control over its suppliers and lack of understanding of its cost structure.

Levers

  1. Understand the suppliers’ fee structure.
  2. Allocate risk according to market rates.
  3. Generate supplier allocation strategy.
  4. Efficiency of the occupation factor of machines and technicians.
  5. Follow up on the operation of suppliers.
  6. Agree on formal, time-bound contracts.

Results

-20%

Costs associated with efficient supplier selection.

7.5X

Return on investment.

Rate and allocation model.

Sample Contract
with fixed and variable parts.

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