Case Study: Federal-Mogul achieves rapid procurement savings with Xchanging

Federal-mogul accelerated results through leading-edge procurement technology and expertise

Federal-Mogul Motorparts, part of Federal-Mogul Holdings Corporation, needed to quickly realize savings and procurement efficiencies after acquiring Honeywell Friction Materials and integrating the new business across Europe, the US and Mexico. To support the merger and improve visibility into spend, the company partnered with Xchanging and used its Procurement-as-a-Service offering with eSourcing and project management support.

Xchanging implemented its MM4 eSourcing technology to run and manage eAuctions, benchmark spend, and increase supplier competition while maintaining product and service quality. The result was rapid turnaround and measurable savings, including 33% on €26 million for brake pads and 39% on €1 million for temporary labour, along with improved sourcing processes, greater market engagement, and a higher profile for procurement within Federal-Mogul Motorparts.

Federal Mogul

Kelly Price

Global Purchasing Director