The client's use of cleaning chemicals was ever-increasing, with stock levels also at inflated levels. The client realised that the suppliers were not acting in their best interests & that the process had gotten out of control.
Spend solutions was engaged by the client to conduct a thorough review of the cleaning chemicals category, which included conducting a tender to identify a preferred supplier(s) & develop fixes for the problems they were observing.
The scope of the project not only identifying a preferred supplier across all sites, but establishing guidelines for optimal supply, storage & usage of the chemicals to further improve safety & lower costs.
Spend Solutions conducted a tender which identified a preferred supplier across all of the Clients sites. As part of the tender, Spend Solutions worked with the preferred supplier to develop a range of solutions to improve utilisation & performance, including new equipment, updated user training, regular supplier visits, monthly management reports & establishing supplier performance KPI's.
Overall, the tender delivered a savings of 23% while the optimisation activities delivered a 19% savings, totally a massive 42% annual savings for the client.