Fortune 500 company with over $10 Billion in annual sales revenue
Client had a multi-million dollar spend for office and break room supplies. Their purchasing agreement had been renewed multiple times with the same supplier and with each renewal, minor benefits were secured. However, more recently, the supplier was passing through regular price increases that were not indicative of the indexes and the current inflationary environment. During the latest audit, the supplier was uncooperative and non-transparent and ultimately had appeared to be complacent with the business. Finally, the Client was unsure how the program compared to the marketplace and wanted to validate that they have a “Best-in-Class” program.
Client determined that it was time to test the market and engaged CenterPoint to conduct our proven proprietary RFP process. CenterPoint initiated the process with a thorough data gathering exercise and comprehensive analysis of their historical data and program. Once completed, we obtained a full picture of their unique buying behavior and with this snapshot, we identified specific areas of concern in their current program. Next, we incorporated our market intelligence and expertise to address the universal challenges that we’ve experienced over the years and through this aggregate insight, a custom tailored RFP was developed. Once bids were submitted from the qualified suppliers, CenterPoint utilized our technology base and expertise to assure an “apples to apples” comparison and scoring of each. As the culmination of the exercise, CenterPoint completed the final negotiation, secured significant savings and monitored implementation of the newly optimized office supply program.
Upon completion of our RFP process, it was apparent that several key elements were not clearly addressed in their current supply agreement. These ambiguities created a “back door” where the benefits of each renewal were eroded over time. Furthermore, as a result of the RFP process, the Client found a supplier that truly valued their business and was committed to continuously improve their program. The winning supplier offered a true “Best-in-Class” solution that exceeded the competition and in the end, created a win for both the Client and the winning supplier.
- Pre – CenterPoint Office Supply Spending: $5.5 Million
- Post – CenterPoint Optimization Office Supply Spending: $3.9 Million
- Savings: $1.6 Million (29.1%)