Real Results for Real Businesses
I’ve helped a wide range of companies improve their procurement processes and save money. Here are a few examples:
North West Manufacturing Plant
Situation
The current spend was £800k per year on new pallets and no one had looked at the costs or the specification.
Task
To reduce the costs through negotiation and by reducing the number of suppliers and looking at the specification of the new pallet.
Action
I worked with the stakeholders, production and quality teams to make sure what was required.
Result
It turned out that the current pallets were vastly over specified. I reduced the number of suppliers and negotiated a large reduction in costs. A reduction of £250k per year. Payment terms were also extended from 30 net to 60 days from the end of the month. Prices were firm for 12 months with no variation.
Nationwide Pharmacy Company
Situation
The current supplier had the business for a number of years for removing confidential waste from over 700 sites, but no one had challenged them on price or service or the Terms and Conditions.
Task
The task was to amend the terms of the contract, negotiate a reduction in costs by issuing a Tender to 3 suppliers including the current one.
Action
A tender was issued to 3 suppliers with assistance for the main stakeholders. These were analysed on the return by all.
Result
The result was we achieved a reduction in costs, payment terms were more favourable Terms and Conditions were amended which we asked for in the tender. Awarded a 12 months contract. The reduction were £250k per year.
Medium size Motor Group
Situation
They had no Purchasing function and required me to set one up in 12 weeks and train a sales person to take on the new position of Purchasing Manager.
Task
Was to identify all the suppliers that the company used and annual spend. It turned out that they had a few suppliers for the same commodities. I identified the easy wins to achieve savings and identified the next phase of savings. The target savings were £100k pa.
Action
Was to send out tenders for the large spends and at the same time negotiate with the other suppliers to reduce the costs and reduce the supplier base.
Result
In the 12 weeks the savings were £287k pa on 3 major projects, reduced the supplier base and improved the payment terms. Also introduced a set of Terms and Conditions. The person carried on the action plan after I left and made more savings.
Contact us for a free chat on how we can help cut your business costs.
📞 07490 850 850 📧 john.wilkinson@purchasemanager.co.uk
