Insights & White Papers

Case Study: Cost Savings in Indirect Spend

By Liberty Advisor Group

Data & Analytics

Liberty worked with a Large Auto Parts Manufacturer to realize over $8MM in annual savings via Indirect Spend optimization.

The ask

Due to a concerning, multi-year increase in overall indirect spend, Liberty was engaged to analyze the overall root cause of the problem and identify & execute ways to realize current-year savings from the supplier network.

The business problem

Despite efforts to drive down Indirect Spend, a Global Auto Parts Manufacturing Company was experiencing year-over-year increases. Liberty was engaged by the CFO to lower ongoing indirect spend with an emphasis on immediately reducing P&L impact.

The outcome

Liberty architected a data-driven solution to realize savings from the Client’s supplier network. Opportunities were identified based on analysis of spot buys, price variability, strategic purchases, vendor consolidation, contractual compliance, and substitution with functionally equivalent alternatives. The team aggregated this data from numerous sources, and the findings were used to negotiate with suppliers to identify a refund, credit, or cost reduction that impacted the current year’s P&L along with providing ongoing indirect savings.

Indirect Spend Optimization

Liberty successfully identified over $8MM in refunds, credits, and/or cost reductions that impacted the current year’s P&L. Additionally, opportunities for ongoing reductions in spend with multiple top suppliers were identified.

About Liberty Advisor Group

Liberty Advisor Group is a goal-oriented, client-focused, and results-driven consulting firm. We are a lean, handpicked team of strategists, technologists, and entrepreneurs – battle-tested experts with a steadfast, start-up attitude. We collaborate, integrate, and ideate in real-time with our clients to deliver situation-specific solutions that work. Liberty Advisor Group has the experience to realize our clients’ highest ambitions. Learn more at and on LinkedIn and Twitter.

By Liberty Advisor Group