Slicing procurement costs by up to 30%
A leading shipyard facing rising costs due to inflation, labor expenses, and geopolitical pressures engaged Roland Berger to identify procurement savings. Despite a booming industry, many shipyards, including this client, have struggled with financial challenges exacerbated by high pre-financing requirements, postponed deliveries, and increased supplier prices. The project focused on generating spend transparency through cost-breakdown analysis, should-cost modeling, and strategic supplier negotiations. This approach also included leveraging volume bundling, competitive bidding, and technical optimization to refine savings across both direct and indirect material streams. The effort resulted in over 1,000 implemented measures, significantly reducing procurement costs and delivering a comprehensive implementation plan to sustain future savings, despite the ongoing pressures of limited production slots, single sourcing, and complex client specifications. The savings potential implemented consistently ranged from 5% to 30% depending on the category securing the shipyard’s EBIT performance.