Leaders in the food waste recycling industry save 38% on their most costly business overhead
Our client, leaders in the food waste recycling industry, are currently recycling around half a million tonnes of organic waste each year and generating 25MW of green electricity for the national grid. They are renowned for providing a cost effective and sustainable service – and their direct spend is strictly monitored by their Head of Procurement to ensure they can maintain their value.
Due to direct spend being the client’s main priority, there was little time or resources to give the indirect categories the attention they required. As a result, the client’s indirect spend was steadily increasing year on year, predominantly in the Workwear and PPE category. The increase was partly associated with the growth of the company, the new site openings and the rapidly rising employee head count but mainly owed to unmanaged ordering and fluctuating supplier pricing.
The first step for ProSource was collecting the client’s spend data and conducting a thorough Spend Analysis. Due to the specialist work, a high percentage of the clients Workwear and PPE items were bespoke and had to adhere to strict health and safety guidelines. The ProSource team took time in understanding the nature and needs of the business as such knowledge would be imperative for the price comparison stage and paramount to the success of the transition.
During the cleansing and categorisation of the spend data, office supplies posed as another interesting category, one that wasn’t initially flagged by the client due to the nature of their business and the necessitated volume. The client was purchasing the expected amount for a company of their nature and size but with their non-existent buying power in the category – they were paying top-end prices.
After conducting a thorough price comparison with trusted suppliers on our ProSource frameworks, a saving of over 28% was realised for both categories.
The savings realised were played back to the client and once the client confirmed they were happy to proceed with the transition – ProSource organised introductions to our trusted suppliers. Once both parties were happy to proceed, we facilitated the entire transition with our suppliers.
Our client has since been purchasing all office supplies, workwear and PPE through our ProSource frameworks and has seen rapid savings. ProSource continue to monitor the clients spend in these categories and manage the suppliers to ensure prices remain competitive.
- Instant cost reduction in both Office Supplies and Workwear and PPE categories
- Ensured long term savings - ProSource are continually monitoring and negotiating with current suppliers to drive down costs
- Through regular client contact, we have recently unearthed a third category that we can help the client address – currently in progress
ProSource removes the hassle of managing multiple suppliers and allows companies to harness the power of collective buying to leverage best value and ultimately reduce costs and increase profit. Click for more...
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