Case Studies

Sourcing

OfficeMax

Success Story: eSourcing

Increased Shareholder Valuewith eSourcing

The Challenge

Transition Into a Global Function

Between 2005 and 2009, OfficeMax was experiencing declining revenues by more than 20 percent. The procurement team was mandated to transform into a global procurement function. There was also a challenge to change the perception that Procurement was only focused on bottom-line savings, as the Strategic Sourcing department managed less than 10 percent of the organization’s total indirect spend. Lastly, each department had its own way of performing, resulting in many disconnected processes across the organization.

Procurement can serve as the catalyst for positive change when the focus is centered on shareholder value.”

—Mike Williams
Senior Director, Strategic Sourcing, OfficeMax

The Solution

Implementation Strategies

Within five months, OfficeMax completely transformed and renovated its procurement department by implementing Iasta SmartSource, Iasta SmartAnalytics, and partnering with Iasta, a Determine Company, Consulting Group to build a global procurement function that allowed for greater leverage and standardization throughout all OfficeMax locations. Now, OfficeMax has a fully engaged Spend Information Management System (SIMS) team that allows everyone throughout the organization to communicate in a timely manner and provides support for establishing policies and procedures, allowing the company to sustain savings.

The Results

Breaking New Ground in New Areas

  • After just 2 years, implemented savings are 116% of four-year target
  • Procurement department has issued 84 successful RFPs focusing on indirect categories across all business functions.
  • Current savings implement 6 fiscal quarters ahead of plan
  • Greater ability to negotiate aggressive pricing contracts
  • Completed spend analysis on $2.2B in spend
  • Strategic Sourcing collected contracts for 85% of known suppliers which equates to over 90% of all indirect spend.
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