Procurement

Procurement

Procurement strategy

Ricardo can cultivate successful sourcing strategies delivering clients cost competitive components from a world-class supply base providing quality, productivity, and security from 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 healthy supply chain. All of this is 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. Ricardo managed a project where our STVM action resulted in over $60M in annual save, and we led 'end of life management' activities for a major OEM to transition internal plant production capabilities to the external supply base for three large transmission programs, providing $109.4M 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

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