Oldcastle materials (OMG) is the US division of CRH Plc a $30 billion business, Ireland’s largest private sector company, OMG is the leading supplier of aggregates, asphalt, ready mix concrete and paving services in the USA.
Annually they produce 37 million tons and 7.7 million cubic yards of ready mix concrete at more than 1200 locations nationwide.
CRH has a very significant purchasing spend when aggregated across all businesses, it was clear from detailed analysis of the annual accounts that this spend wasn’t being leveraged to its maximum value. ADR led a review of the purchasing portfolio across all 8 divisions of OMG. That review led to the adoption of a pan-USA transformation process.
The aim of this transformation programme is 2-fold:
1. To make significant and material cost savings
2. To build a permanent sustainable best-in-class procurement organisation
To achieve this a completely new strategic sourcing team has been created and up-skilled and the results so far are very encouraging.
With their large number of locations stakeholder involvement throughout the process is vital, so the introduction of stakeholder training, together with stakeholder involvement in the sourcing process have removed many of the barriers that inhibited savings deliver previously.
So far working together, ADR and OMG have delivered change and very significant savings.
|Objectives||Build infrastructure for procurement divisions
Make significant and material cost savings
|Services Supplied||Reviewed all purchasing portfolio
Led the USA transformation process
|Outcome||High percentage savings - the $200m saving is on target
Best in class procurement organisation