ERA Group's experts utilized strategic sourcing to deliver $3.5 million in annual savings for global manufacturing company NCH Corporation.
The client
NCH Corporation is a global manufacturer with 8,500 employees across six continents specializing in maintenance chemicals, water treatment solutions, plumbing goods, lubricants, biologicals, and parts-washing systems.
The challenge
Rising input costs, supply chain constraints, and geopolitical uncertainty necessitated an enhanced focus on cost management organisation-wide. NCH sources substantial volumes of direct materials globally (chemicals, lubricants, etc.) and utilises a considerable quantity of containers, pallets, packaging, and MRO supplies within its manufacturing and distribution operations. NCH’s extensive purchase volume across a diverse global supplier base presented a complex challenge in fully optimising supplier agreements, prompting leaders to engage ERA for assistance.
The solution
NCH engaged ERA Group to optimise supplier costs in select expense categories, aligning with ERA’s expertise. NCH maintains a high bar for suppliers including product specifications, quality and service standards.
ERA Group conducted multiple sourcing events primarily through comprehensive RFPs. Incumbents and new suppliers were invited to present proposals pursuant to product and service specifications. Suppliers were also challenged to introduce innovative solutions to optimise their relationship with NCH, including alternative products and contracting terms.
Our experts collaborated with NCH’s internal teams to align sourcing options, assess alternatives, and monitor supplier performance, thereby ensuring the sustainment of product quality, service standards, and improved pricing terms throughout the process.
"ERA Group brought deep category expertise and supplier insight complementing our internal team’s effort to drive incremental value to the business." [ANDREW SCHREYER, GLOBAL COO - NCH CORPORATION]
Breakdown of Results
$3.5 million
Total annual savings
10%
Waste
45%
MRO
36%
Managed print
27%
Packaging
20%
Pallets
“With ERA Group we have achieved savings, and have also benefited from expert advice and support. ERA brought dedicated people with specific knowledge to make a difference and achieve savings beyond expectations.” [James Charlesworth, CEO, NCH Lovosice, Czech Republic]
