Project Area - IT Hardware
Annual Spend - $250,000
Savings Achieved - $142,000
Strategy - Full Sourcing Project
Client had been purchasing computer hardware through an outdated and underperforming contract. Engaged SPG to:
- Collect current hardware specifications from active supplier base
- Work with IT Dept. to develop new specifications based on current market conditions
- Classify end users by performance requirements
- Develop Request for Proposal (RFP) specs and market recipients
- Analyze RFP results
- Present detailed findings to Team
- Develop new contract terms and commitments
Project Area - Fuel
Annual Spend - $16,000,000
Savings Opportunity - $1,000,000
Strategy - Operational Analysis
Client has eight plants running on two separate fuel sources. Engaged SPG to create bidding strategies for individual fuels and to develop optimal fuel program for the future:
- Developed usage and cost models for current fuels
- Evaluated market place to determine pricing benchmarks, and to investigate alternate supply options
- Created sourcing and negotiations plan to contract for both fuel options
- Recommended investment in multiple plants to enable burning of both fuels to allow for hedging opportunity
- Created operational model for client to utilize to determine which fuel source should be used (based on market prices) and to track savings
Project Area - Copiers & Printers
Annual Spend - $740,000
Savings Achieved - $129,000
Strategy - Existing Vendor Renegotiation
Client is in an industry where long term vendor relationships are very important to their business. SPG was approached to perform analysis on their existing Copier & Printer contracts, reviewing current pricing mechanisms and developing new negotiation tactics. SPG completed the following:
- Inventoried and costed all current devices based on current contracted rates
- Benchmarked internal best practices (pricing vs. device functions) and external options
- Created cost model for existing environment using benchmark rates
- Developed set of recommendations around negotiating strategies, operational improvements (replacing or eliminated current fleet with newer equipment)
- Trained client for negotiation sessions with vendors