Case study - Vendor managed inventory

Leading international airlines provider

• Flying over 5 million passengers a year on over 100 routes
• A fleet of 90 aircraft

• Legacy long-term supplier; unit costs included rental of vending equipment > 5 years old
• Introduce an effective Supplier Relationship Management strategy to create a solution without access to a Capex budget
• Detailed analysis of consumption to review stockholding, determine design of new vend solution.
• Ownership of vend solution passed to Airline at end of 3 year contract, removing link between solution and supplier

• 3 year contract, introduced new solution, 5-day on-site support and 23% savings on £400k pa spend
• Significantly enhanced data reporting to improve analysis by individual job number and 3rd party recharges
• Significant improvement in cost avoidance through behavioural change; increased traceability, visibility of use by individual engineer
• 2 year contract extension negotiated to extend vend solution to address CAA audit finding and improve shop-floor productivity
• Facilitated internal process workshop to remove customer-driven costs, enabling the supplier to increase their investment in the account and hold pricing at contract renewal.

Please contact us for further details.

info@procuraconsulting.com

Call us on: +44 (0)203 693 7275