WHAT WE ARE SEEING: 2015
As we continue the narrative with our valued customers we choose to share trends and evolutions that are changing in the marketplace. Driving efficiencies will never slow down, it’s the means and the methods that seem to evolve over time.
As our customers businesses become more healthy and profitable certain areas of the business become stressed. Procurement and purchasing is namely one of those. Simply put, more business means more transactions and more transactions mean more people-power.
How can they do more with less? Vendor consolidation is one area that can significantly impact the procurement group and the bottom line. Recently we had a new customer reveal how they sourced several dozen of their filtration products. After we looked at the list we concluded that there were four products on the list that were essentially identical but sourced from 4 different brands from 4 different vendors. That procurement function went to one annual transaction from 12 annual transactions. We were also saving on the per piece price and naturally logistics cost as well.
Savings: $3,000 per year.