7.5% savings and 94% reduction in transactions

APS were invited by a client to review a range of spend categories and identify any cost saving opportunities.  One of the categories we were asked to support was General Consumables.  Below details how we achieved this success.

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 that the spend was sporadic with multiple suppliers used for the same product types, regionally diverse, no real control of spend or usage, and 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.

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 and analysing supplier proposals.

SUCCESS

  • 7.5% saving on regular runner repeater items

  • Potential further savings of c20% through usage reduction with the implementation of Managed Stock

  • Transaction reduction of over 94% through improved buy process

  • Implementation of online catalogues

  • Improved process for ordering low value, low risk 1 off items

  • Spend reporting from supplier

  • Improved supply chain management

  • Cost Savings tracked by the supplier

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