Our Impact

Using Cleansheet as central analytical approach helps a Global telecom corporation generate $2B+ in cost reductions

A leading TMT (Technology, Media and Telecommunications) organization was facing margin pressure resulting from industry consolidation and high capital spending to maintain competitiveness. The organization turned to Cleansheet to capture near-term savings. Realizing quick wins from using a cleansheet approach, the company built out the capability org-wide, setting up a Center of Excellence to support both their procurement and engineering teams. Using Cleansheet and a broader “should cost” approach, the organization generated $2B+ in run rate cost reductions.

Cleansheet approach helps leading European heavy equipment manufacturer reduce product complexity and costs in six months

A leading European heavy equipment manufacturer with a strong global presence was facing rising costs due to increased variation in design driven by new regulations. The organization created a central procurement group using Cleansheet to drive rapid RFX processes and standardization efforts, leading to a dramatically streamlined set of components and parts that could be used across their global product portfolio. Reducing complexity and applying Cleansheet resulted in a 12 percent cost reduction within six months. The success of the initial effort led the organization to adopt the solution within the R&D department where spend was further reduced 9 percent through complexity management efforts.

Parametric modeling saves fragmented global industrials client 45 percent and simplies vendor relationships

A global industrials client was sourcing a fragmented portfolio with over 40,000 parts and over 1,000 suppliers. Though they had tried building cost models in the past, they were unsuccessful in managing their spend and vendor distribution because of the complexity of navigating a massive number of parts and vendors. The client used Cleansheet to build parametric cleansheets for 10,000+ parts and determine specific cost targets. Through an RFQ process, the client saw ~45 percent potential savings from best bids and were able to reduce the supplier base to a significantly smaller number of strategically important partners.

Understanding underlying product costs help large US retailer expand private label porfolio from 2 percent to 15 percent of categories

A North American retailer with a complex and fragmented portfolio of products and high seasonality leveraged Cleansheet to launch private label products in a large portion of their retail categories. While the retailer already had a robust sourcing and product development process in place, they did not understand how the cost breakdown of their products affected launching new products to market. The client used Cleansheet to build parametric models across a range of categories and establish costs for new products. The Cleansheet model identified savings gaps of 35-45 percent opportunity relative to initial RFPs, with 30-35 percent savings captured immediately. The project delivered over $100M in run-rate savings.