Quantzig’s Data-Driven Approach to Supplier Selection and Procurement Cost Optimization

A leading heavy industry equipment manufacturer with over $2 billion in annual revenue faced escalating procurement costs despite operating an extensive global supplier network. The company sought to uncover the root causes of these rising expenses while refining its supplier selection strategy to align with future business needs. Quantzig implemented an advanced analytical model and framework, driving a 12% reduction in procurement costs. The supplier selection process became more efficient, improving supplier choice and purchase timing by 30%. Additionally, the integration of a what-if simulator enhanced procurement tracking, offering valuable insights for better cost control and timeline management. This comprehensive approach streamlined procurement operations, ensuring long-term cost savings and greater efficiency.