INFORMATION TECHNOLOGY

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ESG's IT projects are focused on assisting our clients in contracting and utilizing information technology as a competitive advantage and to better improve business performance.

With knowledge and experience, we work with our clients to completely understand their current and future needs.  We help companies as they face challenge in strategic, organizational and operational and performance areas such as cost reduction and IT benchmarking.

IT Consulting Case Study:
Situation Overview:

• Analyze current supplier relationship providing Web/IT development and internet strategy service

Key Findings:

• Supplier was unresponsive to negotiation.
• Benchmarking showed the supplier's rates were the highest in the industry 
• Therefore, ESG evaluated the software the supplier used to provide the services and found that the software was common and easily available

Savings Achieved:

Total Annual Spend	$2,840,000
Total Savings	$   340,800
% Savings	12%

 

MRO

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In this category ESG has taken a couple of approaches to produce savings for our clients. First is to assist our clients in building strong supplier relationships in specific MRO category areas to support the just-in-time delivery requirements and to leverage pricing.  The second approach which is dependent upon the level of spend and industry, is to take a close look at outsourcing the category to produce savings.
MRO Case Study:
Situation Overview:

• High level annual MRO expenditures
• High dependency on just-in-time delivery
• Client utilized 62 MRO suppliers

Key Findings:

• Space requirements were a challenge since the client could not stock MRO supplies
• Client utilized multiple suppliers for each MRO category area to fulfill their just-in-time requirements
• Client did not utilize integrated supply houses nor general mill suppliers for their miscellaneous and general MRO requirements

Savings Achieved:

Total Annual Spend	$12,450,000
Total Savings	$  1,867,500
% Savings	15%

 

PACKAGING SUPPLIES

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With a very methodical approach to this category, ESG has produced substantial savings for clients.  Extensive review of this category is conducted with the client and potential suppliers to produce savings including, timing considerations, supply side decisions and implementation of new methodologies.

 

Packaging Supplies Case Study:
Situation Overview:

• The Client utilized 15 different packaging suppliers and had annual packaging expenses of $6,230,000
• Client's packaging needs included: folding cartons, corrugated cardboard, shrink wrap, polybags, and blister packs, 

Key Findings:

• There were multiple suppliers for same container
• Contracts did not include an escalation/de-escalation clause
• Price increases were multiple within a contract period and without notice to client
• Category has not been bid out in over 5 years

Savings Achieved:

Total Annual Spend	$6,230,000
Total Savings	$  1,246,000
% Savings	20%