The client operated a number of sites, who historically had conducted their own sourcing arrangements. As a result, there was a significant number of suppliers supplying workshop consumables across the group, with no co-ordinated activity to optimise how consumables were sourced.
Spend Solutions was engaged by the client to conduct a review of the workshop consumables spend category. The brief was to review the current state, identify the current issues then develop an overarching sourcing strategy that would optimise commercial & supply performance.
Following an initial review, Spend Solutions identified that the client would be able to obtain much improved commercial & performance outcomes by leveraging their combined size & consolidating spend with a preferred supplier. Although the product range was broad, concentrating on the key product areas would allow 1 primary supplier to support all sites, who would then work with the group to standardise products, develop group wide reporting & develop an usage optimisation program.
Through a competitive tender process a preferred supplier was identified that delivered a 26% savings with improved commercial terms. Spend Solutions worked with key stakeholders to manage the supplier transition without disruption. By having a primary supplier, the client was able to develop a standard product list to minimise product creep as well as a consolidated usage report to monitor spend leakage.