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Client Success Story
Cost Model & Sourcing Analysis for Environmental Consulting
SITUATION:
- A major oil and gas company asked for assistance in selecting suppliers for environmental consulting services
- One of the objectives of the company’s strategy was to get a comprehensive understanding of the costs incurred by the suppliers
- Working with the category managers, Anklesaria was tasked with building a cost model for environmental services and analyzing over 30 supplier bids
- In addition, Anklesaria was asked to compare and select the optimal pricing model for environmental services
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HOW WE HELPED:
- Conducted in-depth research to understand environmental consulting rates and their respective cost drivers
- Examined historical rate and activity data. Performed a sensitivity analysis to identify opportunities for improvement
- Created a should-cost model for multiple jobs
- Coached category managers on selecting an appropriate pricing model for suppliers to abide by in the RFI process
BENEFITS:
- The category team consolidated their supplier base to five key players, and modified the pricing model using Anklesaria’s cost model and analysis
- Identified potential savings of $3.4 million
- Transferred critical process knowledge to the category team, enabling them to undertake similar activities on their own in the future
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