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Case Histories

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.

                              

                                                                                    
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