Kimberly Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people – nearly a quarter of the world’s population – trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly Clark holds the No. 1 and No. 2 share position in more than 80 countries.
Kimberly Clark essentially invented many processes for manufacturing disposable consumer products. They have achieved success though continuous innovation and the ability to internally design and manufacture production machinery – allowing for product flexibility which ultimately gave them the competitive edge in the marketplace. Over time however, the cost of manufacturing this machinery became more and more expensive. This ultimately resulted in a weakened competitive advantage.
“Our machinery manufacturing supplier was a one-stop shop, and we purchased the machines as finished products – all or nothing. Because of this, we were overpaying for non-critical components, which was causing us to lose a little traction in the marketplace.” ~ Mark J. Rosenquist, North America Procurement, Kimberly Clark.
Prior to MFG.com, Kimberly Clark had a very good manufacturing process including a group of expert engineers that had been with K-C for a minimum of 14 years each. However, there was always room for improvement. Kimberly Clark was looking for a platform that would help them bridge the gap between Engineering and Sourcing and bring their strategic sourcing process from the finished product stage to the component level. This would help them reduce costs and provide even more flexibility in their manufacturing process.
“While many companies exclude sourcing in the equipment design and purchasing, we aimed to bridge that gap by building stronger connections between the two groups. We utilized the MFG.com platform to do this with great success.” ~ Brian Clare, Director, Machinery & Equipment, North America Procurement, Kimberly Clark.
Kimberly Clark has been an MFG.com strategic partner, utilizing the Professional Sourcing Edition, since 2008. The Professional Sourcing Edition is perfect for sourcing teams in single or multiple locations and not only provides powerful sharing and collaboration tools, but can also be customized to build a completely company-branded sourcing portal. In addition, Kimberly Clark benefits from multi-line item RFQs, Advanced non-disclosure management tools, Excel integration, Real-time tracking, Advanced quote analysis, Order management, and Premium service ∓ support.
Most of the equipment Kimberly Clark has developed to make their products is not only extremely innovative, but also proprietary. By partnering with MFG.com, they were able to take their purchasing initiatives down to the component level – allowing them to source a multitude of complex, made-to-print components at one time and efficiently perform all the necessary analysis to make the best strategic decision. Consequently, they were able to see tremendous cost savings as well as efficiencies in the development of their world class plant equipment while continuing to build strong collaborative relationships between Engineering and Sourcing.
“We are an advocate for innovation and were excited to partner with MFG.com in an effort to make our process even more efficient and expand our supplier footprint. Now, with no communication gap between our Engineering and Sourcing groups, we are able to drive increased value for our customers by the way we procure parts.” ~ Greg Evers, North America Procurement, Kimberly Clark.
“By using the MFG.com platform, our team was able to be a heck of a lot more efficient. We used to accomplish around 100 RFQ’s a year. Now, we can complete around 5,000 – 6,000 projects without increasing headcount whatsoever. The more bids we are able to perform, the more cost savings we see. Additionally, having the virtual marketplace of qualified suppliers is invaluable.” ~ Mark J. Rosenquist, North America Procurement, Kimberly Clark.
Some results that Kimberly Clark has obtained:
“Over the coming months, we plan on expanding our reach within the MFG.com platform and utilizing it as our default sourcing engine.” ~ Mark J. Rosenquist, North America Procurement, Kimberly Clark.