Case Study – Travel procurement project highlights over £660k savings per annum
4th March 2014
Our Client: Our client is a UK based global manufacturer that focuses on providing specialist solutions for medical device manufacturers. The company enjoys a multi million pound turnover and exports to over 40 countries, with offices and resource needs in 6 global locations and over 7000 flight hours accumulated each year.
Project: We were engaged to look critically at areas for cost saving across the entire business.
Actions: In the first instance, we undertook a thorough spend analysis by department to identify areas where cost savings could be made. One of these areas was travel, where the client was spending over £1.7 million per annum.
After analysing the spend, despite complete buy-in from senior management, we had to communicate the potential cost saving opportunities to colleagues outside of the procurement function and sell the benefits of potentially reviewing the travel process. We facilitated cross- functional workshops that used a combination of professional coaching techniques and facilitation to encourage buy in from all the departments. The workshops identified the critical business objectives and explored how Lime Associate’s suggested solution fitted with the business’s needs.
Individual procurement projects were then identified and the procurement process began with scoping the project, identifying potential partners and inviting proposals from a long-list of recommended vendors (including the incumbent). From here, we shortlisted five companies and facilitated a Supplier Day whereby they could showcase their suitability for the project. It is important to stress that this initial shortlist was not influenced by cost.
The final shortlist of two companies was selected by the client’s approved project team, using Lime Associates’ detailed scoring model.
Result: Lime Associates handled the commercial negotiations, receiving opportunities ranging up to £660k per year (38%). The client has subsequently appointed a project team to manage the implementation process.
Summary: The Lime Associates’ team used its management and leadership skills to complement its procurement skills to engage cross functional groups and to ensure maximum cost savings and business improvement benefits were identified.
To find out more or ask any questions, please feel free to contact us on
0114 213 8306, email@example.com or www.lime-associates.com
Categories: Case Studies, Cost Control, Cost Reduction, Consultancy, Medical Device
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