Fast-Track Savings

Quickly Identify and Implement Six Figure Cost Reductions

Fast-Track Savings is APD’s proven procurement process for reducing costs on existing spend. This unique approach shortcuts the strategic sourcing process by leveraging the expertise of knowledgeable commodity specialists who can quickly determine where untapped savings can be quickly implemented. 

Direct materials and indirect spend categories with $2M – $20M spend under management reliably results in $200K+ cost reductions in as little as 14 weeks.

Fast-Track Savings projects follow a straightforward process: 

  • A rapid commodity opportunity assessment so you know where to focus efforts and how much savings can be expected in the short term. 
  • A targeted savings strategy that energizes leadership to take action and reduces change management risks. 
  • A market test of confirmed capable suppliers to drive maximum savings. 
  • Quick cost reductions and an action plan for further reducing costs with improved sourcing strategies.

Recent Client Success Stories 

$1B Commercial Truck Manufacturer Saves $560K on MRO 

The largest division of a commercial truck manufacturer was frustrated after experiencing poor service and increasing costs from its primary MRO provider. APD interviewed 38 stakeholders within the plants and identified the critical information needed to market test 70% of the $6.5M annual MRO spend. A new MRO provider was selected that could deliver 8.5% savings on the MRO spend while improving service levels to match the needs of planning, EHS, finance, operations, and maintenance stakeholders. Savings began 13 weeks after the project kick-off.   

$250M Plastics Packaging Manufacturer Saves $485k on Resins 

A manufacturer of plastics packaging was reliant on a sole source of a specialty PET material that had been raising prices, taking advantage of a North American supply shortage. APD resin experts conducted a global capacity study and identified the source and timing of new capacity not subject to anti-dumping duties. The client and APD used this intelligence to negotiate a cost reduction with the current supplier that resulted in an immediate $485k annual savings.   

“. . .  a grand slam home run . . .It was really a good experience and a good savings for us working with APD” – Read the full quote from the VP of Purchasing and Supply Chain here 

$1B Automotive Supplier Saves $390k on Corrugated Packaging 

A supplier of electronics modules for the automotive industry engaged APD to conduct a project to consolidate their sourcing of corrugated packaging for US and Mexican plants.  Nine potential suppliers were identified to participate in a multi-round market test along with three current suppliers.  $390k annual savings on the $2.2M spend making up the market basket was implemented fairly quickly, with additional savings on the $1.1M tail spend to follow. 

$400M Automotive Supplier Saves $360k on Resins 

A supplier of automotive interiors needed to reduce material costs to maintain competitiveness.  APD resin experts identified 24 specific resins supplied by 5 manufacturers and compounders to focus on based on volumes, program lifecycle, and potential substitution.  First, alternative materials and suppliers were identified and competitive pricing secured.  Next, negotiations with current suppliers achieved 4.5% savings on the $8M annual spend for the target materials, implemented within 16 weeks. 

“. . .we spavined a lot of money . . . Excellent ROI, for sure” – Read the full quote from the Director of Commercial Finance and Purchasing here 

$150M Valvetrain Component Suppliers Saves $220K on Domestic Freight 

A supplier to automotive and truck OEMs was under pressure to reduce costs. One area of focus was their 3PL that handled domestic freight  (LTL and Truckload) due to poor on-time delivery rates and a lack of real-time information on LTL shipments.  APD logistics experts interviewed stakeholders to understand the needs and pain points throughout the organization and identified multiple capable 3PLs to market test. A 3PL was selected that provided greater service levels and the real-time information that was missing, resulting in an 8% savings on $3M annual domestic freight spend within 14 weeks. 

“A lot of good value, the ROI is off the chart. I mean, it’s just really substantial, and it comes right to our bottom line”Read the full quote from the company President here