Client needs

APS worked with a client to review one category of spend with the objectives of reducing spend and costs, whilst also improving business management information and supplier collaboration.

Detailed diagnostic

APS worked with the client to complete an initial review of the spend data, which included delving deep into current system information. 
 
Our diagnostic included
  • Procurement process
  • Supplier collaboration
  • Contract coverage
  • Business management information/data
The findings highlighted that the following improvement opportunities
  • Procure to Pay process (P2P)was not efficient
  • No management information
  • System information was incorrect in some areas
  • No contract in place

Our work

APS worked with the client to develop a basket of goods, and a Request for Proposal, (RFP)
We develop a sourcing strategy whereby the incumbent was invited to provide a proposal as well as 2 potential new suppliers.
The RFP clearly outlined the success criteria for which a contract was to be awarded against, and that each supplier would be treated equally and fairly.
Initial proposals were assessed, meetings held with the suppliers and further follow on meetings, all supported by APS.

Game changing improvements

  • Incumbent supplier was not successful and a new supplier brought on board

  • 3 year contract awarded​

  • Immediate 31% spend reduction

    • Through improved discounted pricing

  • Transactions reduced by 88%

    • Through Framework order implementation and monthly invoicing vs new PO for each requirement​

  • Total savings equated to 31% of total cost

  • Improved business management information which includes

    • Split by different departments

    • Usage and spend by product

    • On going cost saving plan to be implemented

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