Group purchasing organisation ProSource saves multinational manufacturing company 19% on their utilities

Client

Our client, a multinational mechanical engineering company with headquarters in Austria and sites in Europe, North and South America and Asia, enlisted the help of ProSource in 2018 and has since saved thousands on their energy bills.

The client had a sound procurement function in place but, as is often the case, their time, effort and resources were purely focussed on managing their direct spend. Their indirect spend was left unmanaged and unaddressed.

The challenge for the client was to take control of their indirect spend without using their current resources.

Approach

  • Spend Analysis
    • ProSource analysed their indirect spend data and identified two key areas with a savings potential; gas and electric.
  • Supplier Comparison
    • ProSource then undertook an in-depth comparison with our pre-negotiated rates and trusted suppliers and found a saving in excess of 18% on their utilities.
  • Transition
    • After playing back the saving to the client, ProSource managed the transition to a trusted supplier and ensured the client saw rapid savings.
  • Continued Monitoring
    • Once the client was purchasing through the ProSource purchasing frameworks, their dedicated account manager monitors their spend quarterly, ensuring prices remain correct and competitive.

 

Results

  • ProSource provided a seamless and hassle-free transition to another supplier and leveraged best value to provide an instant cost reduction of 19%.
  • Long term savings – ProSource are continually monitoring and negotiating with current suppliers to drive down costs.

Procura provide expert services to clients which can assist as the economic situation recovers and businesses re-set for profitability. We would be very happy to talk through your current challenges and objectives and share our experience.

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