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
6.7
Client savings
2
Spend Categories
CCM conducted a contract optimization exercise of the Office Products and Small Parcel Shipping expenses resulting in significant savings.
Objectives
Challenges
- 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.
Outcomes
Solutions
- 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.
Results
- 29% cost reduction.
- $100K savings from eliminating contractual loopholes.
- Removed pricing inconsistency.
- Eliminated unnecessary services provided by vendor.