The client used numerous car transport companies to move vehicles between sites & customers. Over time the list of suppliers had grown, with no controls over the use of suppliers & commercial terms. Feedback on supplier performance was mixed but the client had no concrete data to confirm how the supplier was performing. The client knew there was an opportunity to improve both commercial terms & performance, however wasn't sure how best to tackle the problem.
Spend Solutions was engaged by the client to conduct a review of the local car transport spend category. The brief was to review the current state, identify the current issues then develop an overarching sourcing strategy that would achieve the defined project objectives.
Following an initial review, Spend Solutions identified that the client had more suppliers than required & that there was no defined specification, KPI's or performance reporting in place. Spend Solutions conducted a group-wide tender to identify 2 preferred suppliers that could be the focus of ongoing development & management.
The solution selected by the client delivered a 10% savings with improved commercial terms. Spend Solutions also worked with both preferred suppliers to develop a performance reporting pack that showed operational performance against set targets, that management could use to monitor performance & action any flare ups before they became major issues.