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Global Supplier Rationalization presentation_BME Symposium_Ben Grudda
- 1. Global Supplier Rationalizationin Indirect Procurement
- 2. MANAGING MULTIPLE SUPPLIERS? SupplierA COMPLEXITY RISKCOST Single SupplierSupplier B Supplier C SAVINGS FROM SUPPLIER RATIONALISATION
- 3. Greater Leverage BENEFITS OF SUPPLIERRATIONALIZATION HARD COST BENEFITS SOFT COST BENEFITS Greater Spend Economies of Scale Lower Invoice Processing & PO Costs Reduced Admin Increased Compliance Increased Spend Management
- 4. BENEFITS OF ARATIONALIZED SUPPLIER Centralised ReportingTrusted Partner who Understands youEconomies of Scale
- 5. WORKING WITH THERIGHT SUPPLIER Analyse Categorized Spend Supplier A Supplier B Supplier C Look for Overlap Compare A B C Support the change management aspect of the process? Does the supplier… Does the supplier match your locations? Proactively partner with you to identify savings opportunities?
- 6. Streamline, centralize and consolidatesupply spending EXAMPLES OF HIGH OPTIMIZATION SUCCESS Leading privately-held mortgage company Complicated procurement & low efficiency Supplier A Supplier B Supplier C Supplier D ! Companysize Time
- 7. Leading privately-held mortgage company EXAMPLES OF HIGHOPTIMIZATION SUCCESS Supplier A Supplier B Supplier C Supplier D Employees can now purchase from one place, with one consolidated invoice € € € € €
- 8. 80% reduction in processed invoices 40hours saved per month $30,000 reduction per month in supply costs EXAMPLES OF HIGH OPTIMIZATION SUCCESS “As our business grows, it’s good to have a supply partner who can scale up with us and be that virtual one-source provider to enable all of our employees to work efficiently and productively.” 20 suppliers 1 supplier Theresa Cherry, Senior Vice President Production at Guild Mortgage Company1,800 employees
- 9. OTHER EXAMPLES OFCONSOLIDATION SUCCESS. Well known fashion retail chain Single-source solution Office supplies Retail supplies Well known hotel chain 20% saving annually 4 supplier tender process Product rationalization exercise Additional 8% saving Single-source solution
- 10. RATIONALIZATION: SOME HARDPROOF Order Request Offer Comparison Follow Up PREPARATION Identify Need Order Requisition ORDER Placing Purchase Order DISTRIBUTION Reception of Goods & Receipts Internal Distribution and Storage PAPERWORK Invoice Handling Payment Handling €0,57 €0,57 €0,57 €0,57 €0,57 €0,57 €0,57 Cost per minute: 15 10 7 15 20 10 10 Time in minutes: €8,59 €5,72 €4,01 €8,59 €11,45 €5,72 €5,72 Actual cost: Total impact 87 €49,81
- 11. 38,854 before RATIONALIZATION: SOME HARDPROOF.Orders 12,761 after 26,093 saved orders €49,81 order process cost 87 minutes order process time 1,3 million saved p.a. € 4,729 working days saved p.a.
- 12. SUPPLIER RATIONALIZATION BENEFITS:A RECAP. Decreased business risk through standardization Supplier A Supplier B Supplier C Supplier D Increased leverage Economies of scale € € € € Single supplier € Decreased administrative burden Decreased time setting up new branch locations Improved compliance
- 13. MAKING RATIONALIZATION WORK. Findthe right supplier Bite off one chunk of spend at a time. Communicate - a lot. Change management Establish accountability Successful consolidation
- 14. One source solution Consolidatedcontract for all your business consumables Lowest total programme cost A tailored program, at the right price for you Dedicated trusted advisor Single point-of-contact for expert advice STAPLES ADVANTAGE: YOUR TRUSTED PARTNER Technology Print solutions Promotional products Facilities products Furniture Bespoke products “Every product your business needs to succeed”
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