Kennametal Base CaseBy Kim S. Nash | Posted 2003-02-01 Email Print
The $1.6 billion Pennsylvania company has spent the last three years taking knives to its $700 million budget for supplies. But first, it needed real data.
Headquarters: 1600 Technology Way, Latrobe, PA 15650
Phone: (724) 539-5000
Business: Manufacturer of tools for metal cutting, mining and road construction
Chief Information Officer: Ralph Niederst
Financials in 2002: $1.6 billion in sales; $212 million net loss; $119 million operating profit
Challenge: Identify every dollar that leaves the company, then cut spending by enforcing corporate procurement policies at its 50 factories worldwide
- Cut $35 million from $700 million in managed procurement costs by May 2003
- Reduce the number of suppliers to 2,000 by 2005, from 8,000 three years ago
- Get employees to comply with preferred-supplier contracts for 80% to 85% of all purchases by 2005, up from less than 40% in 2000
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...