Inorganic growth is on the rise as business leaders move quickly to seize opportunities and undergo significant transformation endeavors. Mergers and acquisitions often go hand-in-hand with strategic cost reduction, and in today’s fast-changing and uncertain business environment, this presents a perfect opportunity to harness independent talent for flexibility and cost savings.
Business leaders are increasingly turning to on-demand talent to solve problems in a targeted way—matching skills and expertise with niche needs. In fact, using independent talent saves companies an average of 35–49% on strategy projects and 31–47% on implementation projects over the big firms by enabling clients to build highly specialized team configurations to solve specific problems. Top companies are using on-demand talent to lead critical cost reduction efforts across the enterprise. Here’s how it worked for one oil and gas company:
Driving Multiple Workstreams for Cost Reduction and Supply Chain Optimization
Following a merger, an energy company faced significant cost reduction goals. Aiming to drive these savings through multiple projects—including indirect procurement, network optimization, and setting up global supply chain PMOs—strategy and corporate development leaders reached out to Business Talent Group. BTG delivered four seasoned experts to lead distinct workstreams across the cost reduction and supply chain optimization initiative:
Strategic cost reduction
In order to assist the global indirect procurement team in identifying cost reduction opportunities and creating strategies to take advantage of them, the company needed a project manager skilled in supply chain management and logistics. For this role, BTG delivered a former PwC Director of Supply Chain Operations with deep expertise in strategic sourcing and cost reduction strategies that improve EBITA. The consultant was able to ensure appropriate reduction targets, define and engage with key stakeholders, validate savings opportunities, and troubleshoot savings constraints.
Supplier contract renegotiation
Supplementing the first workstream, a logistics expert with international contract expertise was requested—not only to renegotiate existing contracts but also to brainstorm additional supplier options with internal teams. Here BTG provided a former AT Kearney Director of Supply Chain Operations who had extensive logistics and supply chain experience in the oil and gas industry. With vast knowledge of vendors in the space, the consultant helped the team identify high- and low-end savings targets and execute the strategy as an extension of the team.
A roadmap to optimize the entire supply chain
A supply chain optimization expert was needed to create a roadmap to improve and sustain an optimized reaction network across the entire supply chain. For this, BTG delivered a former Dupont Global Supply Chain Manager with deep experience in supply chain optimization in the chemicals industry. With the project management and execution skills necessary to manage multiple optimization workstreams simultaneously, the consultant was able to create and manipulate models to identify significant actionable savings opportunities.
Standing up a supply chain PMO
Finally, the team needed support for the setup and execution of a supply chain PMO to govern the portfolio of cost reduction and optimization initiatives. BTG provided a former Accenture Engagement Director and business development executive with extensive experience leading PMOs and transformation initiatives. The consultant jumped in immediately and delivered results even faster than expected— setting and tracking financial and non-financial targets, defining resource requirements, identifying constraints and associated mitigation, and leading change management processes.
With both on-the-ground executive experience and deep industry expertise, the consultants were able to work closely with the internal team, both on-site and remote, to ensure significant and long-lasting cost containment, quickly and seamlessly.
Thinking about cost reduction? The BTG team is waiting in the wings to help you access perfect-fit independent talent. Let us know about your next project!