The client is a large interstate transport company who consumed significant volumes of diesel fuel in both bulk & from petrol stations. The client had made several large acquisitions & as a result had accumulated several fuel suppliers.
The client engaged Spend Solutions to update its sourcing strategy for fuel based on the new organisation structure. The review would include identifying preferred supplier(s) across the group, leveraging the combined size of the group to obtain improved commercial outcomes and establish a infrastructure strategy for handling bulk fuel & improving supplier performance.
Spend Solutions developed an overarching category strategy for fuel, which provided the client with a roadmap to optimise the supply & use of fuel. To facilitate the strategy, Spend Solutions conducted a tender for fuel, which identified a preferred supplier across the group. Through the tender & category strategy, the client was able to deliver over $1m of annual savings under improved commercial & contract terms, plus the supply of bulk tanks & tank monitoring equipment to improve handling of the fuel. In addition, performance KPI's were agreed to with the supplier & reporting on monthly to lift overall supplier performance.