Cost Analysis for Procurement Savings

A project was carried out at a leading solar company to achieve a 15% reduction in procurement costs, resulting in annual savings of INR 3.5 lacs within six months by renegotiating supplier contracts. The spend data was analyzed and benchmarked against industry standards, followed by negotiations with key high-spend suppliers to secure lower prices and improved payment terms. Additionally, the project resulted in consolidation of suppliers resulting in better bargaining power in terms of volume and cost.