Targeted approach

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.

Insights into action

APS worked with the client to complete an initial review of the spend data, which included analysing historic invoices.  
This data was collated and our Procurement Intelligence Analytics visualised the data and provided the insights required.  
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.

Strategic sourcing

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.

Incredible results

  • 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

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