Clear Channel Communications wanted to rapidly generate cost savings and increase cash flow to offset the impact of a significant market slow down. The company was managed on a decentralized basis with numerous operating locations.
Management sensed there were opportunities to consolidate procurement spend and generate savings, but had not been able to implement a method for quantifying and directing the effort.
Liberty deployed its proven approach and proprietary analytics tool, The Profit Box. Analyzing millions of data points across the company’s $400 million procurement spend, Liberty quickly identified major savings opportunities in telecommunications; employee benefits; real estate; office supplies; printing and copying; IT expenditures; business insurance and professional fees. A new procurement model was introduced and Liberty assisted Clear Channel in consolidating and renegotiating supplier contracts.
Through identification of opportunities and leading execution on consolidation, renegotiation and reconfiguration, Clear Channel realized over $40 million in annualized cost savings.
In addition, we helped implement a new procurement model, including a strategic sourcing group that would sustain the identified savings and aggressively attack other savings opportunities.