Clear Channel - Channeling Cost Savings
CASE STUDIES: Clear Channel

Channeling Cost Savings

Business Problem:

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.

Solution:

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.

Benefits:

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.