Case study - Procurement

MANUFACTURER: GRACO

Benefits

Once the most competitive target market price had been identified, a new supply source had been recognised. Fluid Equipment Services are the main distributor for manufacturer, Graco and able to provide manufacturer price support.

Procurement have since developed a relationship with this source and they have since become a Tier 1 preferred supplier. Generating an annual average savings of 9%, worth a value of £9.5k, saving on average £97.42 per unit.

Annual savings

Initial step

Procurement conducted  a best price paid project. The objective was to ensure IESA are sourcing and purchasing from the correct route of supply and obtaining the best possible prices for our clients.

Challenge

With such a large scope of spend, we needed to prioritise and find a starting point. We started with the top 50 highest value lines across all clients.

Solution

We needed to establish a benchmark market price. In order to do this, we conducted research across several channels:

  • Online marketplace
  • IESA preferred suppliers
  • Manufacturers
  • All Other Suppliers and Distributors

Next steps

Prices were collated and analysis was conducted to establish the most competitive market price.

Results

  • Best Price Paid
  • Supply Expansion
  • Preferred Supplier – Strategically Managed
  • Manufacturer Price Support
  • Driving Client Savings

Our Clients