Case Studies
Case Study 1
We helped a leading Oil & Gas company bridge the knowledge gap on marine seismic projects costs.
The Opportunity
OilGasCo, a major global integrated Oil & Gas company, undertakes marine seismic acquisition campaigns around the world to explore deep water oil and gas fields. These campaigns usually require an advanced marine fleet with towed streamers and acquisition and recording technology.
OilGasCo lacked clarity on the cost structure of the rate they were paying firms for these services— so when it was time to renegotiate their contract, they came to us for help.
Our Approach
To begin with, we met with key stakeholders of the marine seismic acquisition category to understand their needs and goals.
Once we established their requirements, these were our next steps:
- Researched the North American and global marine seismic acquisition industry.
- Developed an understanding of the seismic acquisition campaigns including tools & technology used, expertise required, duration of campaigns and other details crucial to the success of campaigns.
- Developed a multi-tiered Should-Cost model for the seismic acquisition and recording.
- Presented the results and recommendations to OilGasCo.
The Result
Our Should-Cost model helped OilGasCo understand what a fair and reasonable day rate for seismic acquisition activities should be. It also validated their assumptions and helped them gain an understanding of their supplier’s financial health.
The cost model that we built provided them with the capability to account for different geographic locations for the campaign and the crew. With built-in flexibility, OilGasCo was able to do their own sensitivity checks to ensure that they were paying a reasonable price for acquisition and recording.
Our detailed instructions on using and updating the model also made sure the process would continue despite personnel turnover.
A win-win for all parties involved.
Case Study 2
Our benchmarking study helped a leading Oil & Gas company negotiate an effective contract for purchases for a new construction project.
The Opportunity
A major Oil & Gas company that was embarking on a big construction project brought us in to develop a benchmarking study. This would be used to benchmark against RFPs from different suppliers.
The goal was to use the information to ensure competitive pricing and terms, which was critical as the company was building multiple large offices at various locations.
Our Approach
We contacted over 50 companies that had similar buying power in both the client’s industry and other industries that conduct similar large-scale purchases on a global scale.
We then created a questionnaire covering different information related to discount schedules, along with other terms and conditions.
Next, we conducted a study by guiding each participant through the questionnaire and compiling and analyzing the data.
We created a comprehensive report using the data and presented it to the client.
This gave them a clear idea of how their current pricing terms compared to others and enabled them to use this data to analyze RFP responses.
The Result
Using the data gleaned from the benchmarking study, the client gained valuable knowledge about pricing terms, conditions and discount schedules.
They then used the knowledge to revamp their negotiation strategy and develop a more robust contract with their suppliers.
Case Study 3
Our AIM&DRIVE ® process helped a leading Oil & Gas company reduce costs and increase efficiency.
The Opportunity
A major Oil & Gas company faced significant problems when evaluating the construction of an onshore gas asset, one of their major projects. The viability of the entire project was challenged by the deteriorating prospects of gas revenue from lower gas prices and inflationary trends in engineering and construction labor costs in the region.
This was where we came in.
ANKLESARIA conducted a series of AIM&DRIVE® Cost Challenges on each major apex element with the engineering firm—ranging from gathering lines, trunk lines, power supply and distribution to field compression facilities and well pumps.
Our Approach
We worked together with the client and their EPC supplier, including project managers, construction experts and engineers from various disciplines.
We used a number of key strategies to solve the problem: first, we changed various material specifications to reduce unit process, overall quantities required, and amount of construction time and labor required. We also standardized designs of certain high-volume materials, integrated and modularized certain electrical and electronic equipment.
Then we went further: from reducing wastage of material during construction to eliminating the need of certain construction steps and activities. We also recommended revisiting the testing and inspection approach for finished work.
While stressing the need to adopt construction approaches and planning that reduced the risk of downtime due to weather conditions, we also helped close the gap between the originally assumed and the current market unit cost rates for materials, construction labor and equipment.
The Result
Our efforts led to a 20% unit technical cost reduction from the initial budget estimate.
Each strategy employed and revised process made a significant difference in cost avoidance. ANKLESARIA’s process also led the team to develop a revised concept and budgetary estimate in record time.
We created a sustainable competitive advantage for a leading manufacturer of specialty components through extensive training and development of its market intelligence team.
The Opportunity
Our client, a global leader in designing and manufacturing specialty components for consumer electronics, telecommunications and life sciences was facing an extremely challenging marketplace. Between rising product costs and decreasing commercial prices, they needed a competitive advantage to manage costs.
The need of the hour was to enhance employee knowledge of Strategic Cost Management techniques. It was essential for employees to have support and practice to implement new approaches to cost management.
We were brought in to educate their supply chain and procurement teams around the world and conduct coaching session workshops for participants to practice the techniques.
We were also tasked with assisting in the creation of an Internal Intelligence Cell to support stakeholders with Market Intelligence, Cost Modeling, and coaching.
Our Approach
To begin with, we conducted Strategic Cost Management seminars for over 200 of the client’s supply chain and procurement professionals.
The courses took place all over the globe to accommodate each participant’s location. Immediately after each 2-day educational seminar, ANKLESARIA led a one-day coaching session for employees to apply the concepts and tools they had learned to one of their current projects.
Education was only one half of our approach. We also worked closely together with a manager who led a newly formed Market Intelligence team. We provided inputs on the general structure of the team, job qualifications for team members, education of team members, and key tools the team would need to succeed in supporting their internal stakeholders.
Our key tools included Data Sources, Cost Model templates, Market Intelligence templates and a structure to deliver their services to stakeholders.
The Result
The main result of our training was a marked increase in cost awareness seen through educating 200+ procurement professionals in Strategic Cost Management techniques.
It also led to practical application for the 200+ participants and the creation of a world-class Market Intelligence team.
Over a three-year period, the Market Intelligence team routinely saved 5-6% in each project with savings upwards of 30-40% in some projects.
What’s more, top executives highlighted the Market Intelligence team as a key value addition to the company.
We worked with a global pharmaceutical company to improve their supply of core vaccine inputs, reduce costs and develop key insights for similar categories.
The Opportunity
A global pharmaceutical company involved in vaccine production was working with a constrained and near-monopolistic supply relationship.
The core inputs for vaccine production was at one of two key global manufacturing sites.
The manufacturing plant in question was not achieving the required ROI and was a candidate for divestment.
That was where ANKLESARIA came into the picture.
Our Approach
We worked closely with the client and their internal procurement team members to understand key drivers of value creation for the supplier and customer.
We then developed a detailed process-based cost model to understand cost drivers and sources of value creation for raw materials and inputs, processing and delivery of vaccine as a precursor to the customer facility.
In addition to working with the internal team throughout several days of negotiation with each supplier, we also helped in the development of a clear and effective negotiation strategy.
The Result
Our efforts resulted in a 21% price reduction during negotiations.
We also identified an additional 35% in yield losses that the client was not aware of until then.
This led to the client setting up a LEAN improvement team to remove such bottlenecks.
Using our findings, the client also stopped subsidizing other supplier revenue streams, while the supplier benefited from the removal of these bottlenecks.
Their internal team used the learnings and templates to deliver cost insights for various other categories and contracts.
In the long run, our work also led to increased pandemic preparedness and allocations.
We helped a major US auto manufacturer eliminate defects and reduce transportation costs for transmission castings.
The Opportunity
A major US auto manufacturer came to us with a specific problem: poor packaging was having a negative effect on the quality of its transmission castings.
This led to defects in the final product.
Our Approach
Our automotive expert worked together with the client’s R&D team, packaging engineering division and suppliers to completely redesign the packaging layout.
We used custom-designed plastic moulds known as dunnage to prevent the castings from moving during transit.
The Result
Our solution – custom-designed dunnage – prevented damage during transport and also enabled the client to ship an increased layer of castings in each truck.
This led to increased transport utilization and reduced the number of trips each year.
Ultimately, our efforts solved the client’s key issue and also resulted in lower carbon emissions and fuel usage.
We enabled a global industrial equipment manufacturer to anticipate market trends ahead of time.
The Opportunity
Our client faced an issue with price negotiations over metal with suppliers.
The hyper-cyclical mining industry tends to focus heavily on combative price negotiations when metal prices fall by over 10-15%. As a result, suppliers often link their prices to their customer’s metal movements, regardless of supplier costs.
Our client needed to gain an advantage over this trend.
Our Approach
We conducted a comprehensive market analysis that focused on understanding key price drivers including labor regulations, technology, demand and capacity utilization.
We then supplied our key findings and insights to the client for immediate implementation.
The Result
Thanks to our analysis, the client was able to proactively engage suppliers 3 to 6 months earlier instead of waiting for rate negotiations after prices had changed.
After experiencing the clear benefits of this approach, the client proceeded to use the same ‘anticipate the market’ philosophy across its aircraft, automotive and energy portfolio.