Case Study: a mid-market industrial manufacturer achieves 30% EBITDA growth and stronger supply chain resilience with L.E.K. Consulting

a mid-market industrial manufacturer boosts EBITDA 30% with LEK Consulting

L.E.K. Consulting helped a mid-market industrial manufacturer that faced challenges from a decentralized and unmeasured procurement function. The company lacked strategic sourcing, had few supplier contracts in place, and its supply chain was complex and unintegrated due to a history of acquisitions.

L.E.K. implemented a three-phase procurement transformation program encompassing indirect sourcing, direct sourcing, and operating model evolution. The solution deployed strategic negotiations, cost modeling, and RFPs. As a result, L.E.K. helped the manufacturer achieve a 30% improvement in EBITDA, 15% savings across direct spend categories, and a 24-day extension in payables that unlocked millions in cash. The program also significantly reduced supply chain risk and established procurement as a strategic, value-creating capability for the business.