Spend Analytics & Opportunity Assessment

For help in evaluating a major spend category to identify opportunities for delivering increased value for money this public sector organization turned to Purchasing Practice:

Situation

This major category, adds up to $1bn in annual spend. The objective was not only to identify opportunities for cost savings, but to also assess the impact to the local supply base.

Approach

We quickly evaluated the spend data to create a market facing category cluster and developed strategic options for each sub-category to be phased over several years.

We developed RFI & RFP packages for the in-house team to execute.

Recommendations

• Category Structure
• Sourcing approaches including options for sole supplier and multiple supplier relationships with targeted savings.
• Implementation roadmap

Results

Client’s executive accepted our recommendations and executed in-house, with the first initiative delivering a 25% cost saving. More broadly, the client obtained a deeper understanding this major category and the strategic options available.