CASE HISTORY #1 Client: $11 Billion Global Beverage Company* Commodity Spend Reviewed: Printing via client's agency Contract Savings: 40% PRE Procurement Analytics Review Client Situation: • Overabundance of vendors • One-off buying • No standardizations for agencies to follow when preparing same-type items art and mechanics • No utilization of revenue guarantees to vendors for reduced pricing • Lack of supplier performance or pricing review • Significant maverick spending • Nil rebate or other “incentive” schedule in place • No Service Level Agreements POST Procurement Analytics Restructure Objectives Achieved and Strategies Implemented: • Vendor contracted with fixed pricing cutting spend nearly in half • Vendor base reduced by over 50% • Clean database with all spend clearly identifiable and in one place • Additional multi-million dollar “management fee” reduced by 65% with redefined SOW • Established SLA’s guaranteeing supplier performance or penalties invoked • Eliminated triple bidding for contracted agreements – improving management productivity by 30% • Value engineered specs for maximum production efficiencies and savings CASE HISTORY #2 Client: $750M Cosmetic and OTC Products* Commodity Spend Reviewed: Petro-chemical Bottles Contract Savings: 18.5% PRE Procurement Analytics Review Client Situation: • Spend informational data scattered or non-existent • No bidding or questioning of costs • No benchmarks established • Monthly resin index fluctuations not investigated or correlated to pricing • No ownership of tooling POST Procurement Analytics Restructure Objectives Achieved and Strategies Implemented: • Contracted lower pricing with one current vendor • Cost-plus pricing model utilized with the only variable being monthly fluctuation of resin prices • Clean database – understanding where monies spent and with whom • Prepared and presented ROI and advantage of tool ownership • Negotiated all fixed costs and investigated ROI for new domestic tooling *Client names withheld for privacy. |