Case Study: Global Heavy Equipment Manufacturer saves $45M in direct material sourcing with GEP SOFTWARE

Global Heavy Equipment Manufacturer Saves $45M in Direct Material Sourcing With GEP SOFTWARE

A Global 500 heavy equipment manufacturer with more than 400 sites and multiple subsidiaries faced fragmented direct-material sourcing across 48 legacy systems, poor spend visibility (about $4B not visible and 48% of spend with no sourcing automation), limited supplier cost breakdowns, and low tool adoption that made forecasting and onboarding difficult.

Working with GEP, the company deployed GEP SOFTWARE source-to-pay capabilities, created a centralized repository mapping one million part numbers, and established a centrally led governance model and harmonized processes with 100+ stakeholders. The program delivered $45M in savings, raised sourcing/RFX and CLM tool adoption to over 80%, gave 7,000 users improved spend visibility, consolidated 30+ technology tools, and centralized management of 75,000 contracts while reducing manual work and improving forecasting.