CONSUMABLES CASE STUDY

Stationery Supplier Consolidation and Tender

THE COMPANY

A leading food production group with multiple production facilities across the UK.

THE SITUATION

The group has a significant annual spend on office consumables across its facilities in the UK. Each facility has their own individual buying arrangement which have not been reviewed in the last six years. Some of the current supply set-up are with suppliers that are financially unstable, and, in some cases, prices have increased by 12% on average.

THE OBJECTIVE

Implement a supply arrangement that allows the group to reduce spend by 5%, achieve best value and access to proactive account management, next day delivery and online ordering.

THE STRATEGY

Aggregate group spend and consolidate to one provider as the stationery market is saturated with suppliers offering similar benefits. Furthermore, having one provider brings spend visibility and the opportunity for variety reduction and further savings.

THE APPROACH

2 + 1 supply arrangement was proposed, offering a 2-year contract was a vehicle to obtaining fixed prices. The option of an additional 1 year contract incentivises the supplier to drive for further savings and efficiencies.