Bring visibility to spend and assess saving opportunity in two large spend categories. Create spend controls and leverage market best practices.
CASE STUDY - OS & SHIPPING
Largest Tank Truck Transporter & Logistics Provider
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CCM conducted a contract optimization exercise of the Office Products and Small Parcel Shipping expenses resulting in significant savings.
- Lack of market pricing and structure knowledge.
- Inability to perform necessary ongoing category management tasks.
- Lack of supplier governance processes and measures.
- Limited competitive market knowledge.
Eliminated pricing inconsistency for all office product SKU’s and Freight/Accessorial charges.
Systematic Vendor Review
Standardized and right-sized current vendor deals to the current corporate needs and market best pricing. Added subject matter expertise to all key renegotiations and purchases.
Optimized Contractual Terms
Optimized contractual terms, including pricing, to ensure maximum benefit to the client; implemented ongoing market benchmarking of key suppliers.
Optimization of Services
Uncovered additional six figure savings by managing and optimizing unknowing weekly service charges and other unnecessary services provided by vendor.
- Established client goals, expectations and data request(s) during stakeholder kick off meetings.
- Completed comprehensive analysis of daily SKU usage, shipping behavior, SLA’s and ‘best in class’ contracts.
- Performed an in-depth vendor analysis and identified potential cost savings.
- Presented new recommendations to client decision makers, on how to move forward, and guided client into a decision on which contract structures worked best in their environment.
- Negotiate final pricing plans and contracts with incumbent vendors.
- Optimize contractual terms to ensure maximum benefit to the client.
- 29% cost reduction.
- $100K savings from eliminating contractual loopholes.
- Removed pricing inconsistency.
- Eliminated unnecessary services provided by vendor.