Procurement

Procurement

Procurement strategy

Ricardo can cultivate successful sourcing strategies delivering clients cost competitive components from a world-class supply base while providing quality, productivity, and security from supply chain disruption.

Our approach to deploying a successful procurement strategy involves conducting extensive primary and secondary research to understand trends in the global commodity market, supply base consolidation or growth, and industry capacity. Additionally, we identify and rank supplier capabilities across critical characteristics, geographies and technologies to form a robust and healthy supply chain. This is primarily done to disseminate and harmonise client goals, including total cost, productivity, local content and quality targets. 

We have a strong track record of producing cost savings for major OEM service teams. RSC has managed projects where our STVM action has resulted in over $60M in annual cost savings. We have also led 'end of life management' activities for a major OEM to transition their internal plant production capabilities to the external supply base for three large transmission programs, providing approximately $110M in lifetime cost avoidance.

Our seasoned consultants can help your company:

  • Navigate supply base risks while identifying new supplier capabilities and competencies
  • Quantify market cost drivers: technology and manufacturing process disparities, volume, capital investment, raw material, and high-value content
  • Capitalise on emerging trends in supply chain configuration and global manufacturing footprint