Built for Off-Road and On-Road Performance
Powersports OEMs run some of the fastest-moving, most competitive supply chains in manufacturing — fabrications, plastics, driveline, castings, machining, wheels, tires, electrical, batteries, and logistics, sourced globally across hundreds of suppliers. Tenet brings the spend analytics, category strategy, and execution discipline to turn that complexity into realized, sustainable savings — and supply resilience that holds up under pressure.
A multi-wave sourcing transformation across $3B of addressable spend
Tenet ran a spend diagnostic across multiple MRP systems, then executed multi-wave strategic sourcing across direct materials and logistics — with dedicated cross-functional teams collaborating across all 19 plant locations.
Source: Tenet Consulting client engagement — Polaris Inc.
Two Waves. $3B of Addressable Spend.
Polaris Inc. — the $8B global powersports leader, designing and manufacturing off-road and on-road vehicles across 19 locations worldwide — engaged Tenet after a spend diagnostic identified $3B of addressable spend across multiple MRP systems. Tenet executed strategic sourcing in multiple waves spanning direct materials and logistics, with dedicated cross-functional teams from Purchasing, Engineering, Quality, Manufacturing, Aftermarket, and Finance.
Fabrications & Castings
Fabricated metal and cast structural components — core to every chassis and frame.
Machining
Precision-machined components requiring deep supplier capability and quality control.
Plastics
Molded plastic components and body panels balancing cost, quality, and finish.
Driveline & Powertrain
Driveline, powertrain, and related assemblies that define vehicle performance.
Wheels, Tires & Rubber
Wheels, tires, and rubber components engineered for terrain and durability.
Electrical & Batteries
Electrical components and batteries where part-family clarity unlocks leverage.
Logistics & Transportation
Inbound and outbound freight and logistics — sourced alongside direct materials for end-to-end value.
The Challenge: Margin Compression in a Competitive Market
Despite clear market leadership, intense competition was compressing margins — and legacy procurement practices were quietly adding cost. Three patterns, in particular, were working against the organization.
Cost crept in with every model year
Model-year changes triggered "New Part Tax" charges that inflated cost with each platform refresh.
Upfront price was obscured
Procurement strategies emphasized annual rebates over transparent upfront pricing, masking true cost.
The "three-quote system"
A reflexive three-quote process scattered volume across suppliers and eroded negotiating leverage.
Competition outpaced sourcing
Intense market competition squeezed margins faster than legacy sourcing cycles could respond.
The fix: a spend diagnostic and transparent should-cost modeling — eliminating the "New Part Tax" and consolidating volume to suppliers worth competing for.
The Approach: Tenet's Proven 7-Step Process
Working alongside dedicated cross-functional teams — Purchasing, Engineering, Quality, Manufacturing, Aftermarket, and Finance — across every plant location, Tenet guided the organization through its 7-step sourcing process, reinforced with both classroom and hands-on training throughout execution.
The Results: Two Waves, $165M Realized
After executing multiple waves across direct materials and logistics, Tenet and the client team delivered measurable, durable value — including supply resilience that proved itself when the global supply chain came under maximum strain:
- $165M annualized savings (~12.4%) across the first two waves — with Wave 3 projected to add $65M+ (~14%).
- Over 40% supplier rationalization across the supply base.
- 50% better on-time delivery through peak supply disruption — from newly sourced suppliers versus prior suppliers.
- 40% superior quality versus prior suppliers through peak supply disruption, backed by lower PPM guarantees.
- Eliminated the "New Part Tax" through a transparent pricing model and strategic supplier contracts.
- Enhanced working capital through improved payment terms and inventory optimization, with full transition support.
- Trained 140+ professionals in Tenet's sourcing methodology — embedding the capability in-house.
"The proof of the process became clear under real pressure. The suppliers we identified performed 50% better on delivery and 40% better on quality versus prior suppliers—despite severe global supply challenges."
Read the Full Case Study— VP of Strategic Sourcing, Polaris Inc.
About Tenet Consulting
Tenet Consulting is a Chicago-based strategic sourcing and supply chain consultancy. Over the last three decades, our team has delivered more than $1 billion in documented client savings across 20+ manufacturing industries, driving measurable value at an ROI of 6–15×. We use a proprietary 7-step sourcing process to turn complex direct-material spend into realized, sustainable results. Contact us to start a conversation.
— VP of Strategic Sourcing, Polaris Inc.