Over 30% savings & 84% transaction reduction

The Brief

APS were invited by a client to review a range of spend categories and identify any cost saving opportunities.  
 
One category we were reviewed delivered amazing results.  Below details for how our strategic approach to sourcing delivered this success.

The Appraisal

APS worked with the client to complete an initial review of the spend data, which included analysing historic invoices.  
 
This data was collated and put through a spend analytical software to visualise the results.  
 
The key findings of the analysis demonstrated
  • Spend was sporadic
  • Multiple suppliers used for the same product types,
  • Regionally diverse
  • No real control of spend or usage
  • No detail on spend visibility.
 
This lead to further information being gathered by working with the higher spend suppliers to understand an historical 12 month spend profile.

The Process

The data gathered from the historical 12 month data was used to compile an RFP which was issued to both incumbents and potential new sources.
 
APS project managed the whole process
  • including writing the RFP
  • gaining clients agreement to the RFP
  • hosting supplier visits
  • analysing supplier proposals.

Success

  • Over 14% immediate saving on a like for like basis

  • Total saving opportunity of over 30% by utilising alternative products without compromising quality

  • Transaction reduction of over 94% through improved buy process

  • Implementation of online catalogues

  • Spend reporting from supplier

  • Increased engagement with supplier

Get In Touch

"Turn your spend and suppliers into your competitive advantage""

TEL:

0330 311 2601

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