A client with site in numerous states transported many hundred if vehicles interstate per year. The existing arrangements were very localised, with each site having their own preferred suppliers & commercial arrangements. In many cases, the same suppliers were being used by different sites but under different rates & terms.
The client requested for Spend Solutions to undertake a review of the interstate vehicle transport category, with a view towards identifying opportunities for cost reduction & performance improvement.
Following an initial review of the category, Spend Solutions conducted a tender to identify preferred supplier(s) for the client's ongoing requirements. The tender sought to leverage the clients combined size to obtain improved pricing, commercial terms & supplier performance metrics.
Following completion of the tender, Spend Solutions was able to identify a suitable supplier to support all of the client's interstate vehicle transport requirements.
The new arrangements delivered the client a 19% savings compared to the previous sourcing arrangements, standardised group pricing, improved payment terms, consolidated group reporting & performance KPI's that the supplier was to be measured against.
Overall, the project delivered improved commercial outcomes while also improving supplier performance.