Supply chain cost reduction for a 2W manufacturer
08 Apr 2020


  • Client Description: A 2W manufacturer with over US$ 1B in revenue
  • Opportunity: The client wanted to identify and improve its supply chain management and reduce the associated material procurement costs to increase profitability across its manufacturing plants
  • The firm wanted to reduce cost across warehousing, inventory, production and dispatch

Our Approach

  • Evaluated the key strategic materials suppliers (~60% cost contribution) both Indian and Foreign (Korean / Japanese) through the QCDD (quality, cost, delivery & development time) approach and shortlisted the vendors accordingly
  • Identified bottlenecks and applied theory of constraints in warehousing, production and dispatch
  • Identified areas of improvement and developed delivery strategies to drive out costs from the system through increased localization or indigenization of products, effective vendor management (panel optimization), tiering of vendors and leveraging the volumes to get quantity discounts from the chosen vendors

Key Insights / Outcomes

Clear drivers and inhibitors of client dealerships were identified and benchmarked against competition to find improvement areas

Client clearly understood up-selling and cross-selling potential

Training gaps for sales executives were identified and plugged with updated content and training modules

Praxis Value Delivered

  • We successfully identified around 15+ opportunities for improving supply chain productivity on the shop floor, warehousing, dispatch and inventory management
  • Overall >10% cost reduction was achieved 
  • Also, we helped the company in the implementation of low-cost automation solutions following the engagement over an 18 months time period
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