Manual processes and inadequate pricing benchmarks impeded strategic sourcing.
Like any global manufacturer, Rite-Hite must procure tens of thousands of parts and manage the supplier relationships behind them. The tariff volatility and market fluctuations of the past year led to sharply rising supplier prices, prompting Rite-Hite to reassess its supply base and exposing major gaps in its traditional procurement tools and workflows.
In their effort to find new suppliers and reduce BOM costs, the procurement team had to juggle RFQs scattered across disconnected email threads. Every piece of information had to be manually extracted and entered into spreadsheets, and whenever new details surfaced through other channels, they had to track, update and re-enter it all over again.
Validating supplier pricing was an even harder hurdle. Building a single should-cost model could take weeks of analyst time, assuming those internal resources were even available. That made it nearly impossible to benchmark pricing at scale or move quickly enough to negotiate effectively.
Rapid, reliable cost benchmarks at scale.
Procurable centralized Rite-Hite’s sourcing workflow into one platform. Supply Chain Managers no longer search inboxes for RFQ updates or re-enter data across spreadsheets. RFQs, supplier responses and cost breakdowns flow into a single, structured workspace, without time-consuming integrations to get started.
Procurable’s Should-Cost Intelligence Engine uses global manufacturing data, material inputs, labor rates and production parameters to generate should-cost models in seconds. Within the first 60 days, Procurable produced more than 1,000 should-cost models, giving Rite-Hite a consistent, data-backed benchmark for every supplier quote.
With that visibility, Rite-Hite identified nearly 20 new qualified suppliers and uncovered over $3 million in cost-saving opportunities. In eight weeks, the team turned that into approximately $200,000 in annual awarded savings.
"Procurable started to streamline our cost-savings efforts in just a few weeks. The platform's should-cost modeling capabilities have enabled us to quickly identify items and suppliers with substantial savings opportunities. Its RFQ management tools help simplify the process of validating those opportunities through competitive quoting. Additionally, Procurable makes it easier to discover new suppliers across global regions, improving both our sourcing reach and efficiency."
Scaling across categories, regions and the procurement lifecycle.
Rite-Hite is preparing to expand Procurable across its global footprint, starting with RFQ automation in additional regions so teams around the world get the same speed, structure and accuracy.
Rite-Hite also plans to apply should-cost modeling across all major spend categories, from commodity components to complex assemblies, moving from validating supplier pricing to identifying savings opportunities long before an RFQ begins.