An automotive client had 3 vehicle detailing companies working onsite at 1 dealership, built up over years based on personal preferences of department managers. Performance issues were ongoing but personal relationships often stood in the way of addressing the issues & driving real change. Spend Solutions was engaged to conduct an objective, facts based review that would seek to identify current issues & develop a sourcing strategy that addressed those issues.
Spend Solutions was engaged to conduct a review of vehicle cleaning & detailing, including conducting a tender. Initially, Spend Solutions spoke with key internal stakeholders to understand their perspectives, expectations & current management practices. A market tender was then conducted to obtain proposals from suppliers & to assess capability in line with client requirements. Given the high potential for reputational risk in the detailing industry, the supplier assessment module was used to assess each supplier & identify any potential reputational risks.
The review identified significant commercial opportunities by consolidating spend with less suppliers & improving supplier performance by implementing regular supplier performance reporting. The supplier assessment module also identified supplier behavior which potentially exposed the client to significant reputational & financial risk. By acting on the information obtained from the review, the client was able to mitigate identified business risk, significantly reduce costs & improve overall supplier performance.