CONSUMABLES CASE STUDY
Stationery Supplier Consolidation and Tender
A leading food production group with multiple production facilities across the UK.
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.
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.
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.
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.
• Fixed stationery prices for 24 months and ink and paper for 12 months
• 5% saving target per quarter in year 1 built into the contract without impacting quality
• No minimum order value
• Free next day delivery
• Access to reporting through online accounts
• Single group dedicated account manager
• Quarterly reviews
• 99% quality and delivery success as a core KPI
• Improved web-based ordering system