Case Study: a multibillion-dollar specialty equipment manufacturer and service provider achieves sustainable procurement savings with Maine Pointe

a multibillion-dollar specialty equipment manufacturer and service provider achieves 4:1 ROI in year 1 with Maine Pointe

Maine Pointe was engaged to help a multibillion-dollar specialty equipment manufacturer and service provider following its acquisition by a private equity firm. The challenge was to drive EBITDA improvements within a two-year sale window, focusing on a procurement function that was immature and siloed. The company suffered from fragmented supplier relationships, an under-skilled team, and entrenched cultural barriers from over 100 historical acquisitions.

Maine Pointe implemented its Leader and Organization Improvement (LOI) methodology alongside strategic procurement expertise to redesign the function. Their solution involved replacing most of the procurement staff, restructuring supplier relationships to be partnership-oriented, and implementing standardized processes and a Procurement Management Operations System (PMOS). The results included sustainable savings, a 30% reduction in headcount, and best-in-class processes, delivering a 4:1 ROI in year one and a 6:1 ROI in year two for Maine Pointe's client.