Case Study: a utility company gains cost transparency and optimizes negotiations with GEP

a utility company improves transformer negotiations with GEP across nearly 1,000 suppliers

A full-service utility company with nearly 1,000 suppliers faced challenges in gaining cost transparency for utility-scale transformers. Their complex operations hindered supplier negotiations and spend management. They partnered with vendor GEP to address this challenge using should-cost modeling.

GEP collaborated with the utility to understand the production process and develop customized cost models, generating baseline prices through cost estimation. As a result of GEP's insights, the client improved negotiations on high-spend categories and identified significant cost-saving opportunities in their sourcing process.