Professional Services CASE STUDY
Professional Services Maverick Spend Reduction & Supplier Consolidation
Case study analyzing how Global Advisory Partners reduced tail spend maverick purchasing by 65%, capturing $2.1M in annual savings.
Executive Background & Procurement Audit
Prior to inventory control re-engineering, the organization faced excess carrying costs and periodic stockout bottlenecks. By deploying quantitative EOQ batch modeling and automated three-way matching workflows, procurement leadership achieved cost optimization.
Financial Transformation Walkthrough
Annual Sourcing Volume: $90,000,000
- Baseline Batch Size: 500 units (Over-ordering)
- Optimized EOQ Batch Size: 2,000 units (Quantity Discount Tier 2)
- Annual Carrying Holding Cost Savings: -$850,000
- Net Annual Sourcing Benefit: +$1,420,000
- Baseline Batch Size: 500 units (Over-ordering)
- Optimized EOQ Batch Size: 2,000 units (Quantity Discount Tier 2)
- Annual Carrying Holding Cost Savings: -$850,000
- Net Annual Sourcing Benefit: +$1,420,000
General Ledger & Cash Flow Impact
Re-aligning purchase order frequency with EOQ batch math reduced annual order placement administration while securing volume price breaks, generating +$1,420,000 in net annual working capital savings.