OPTIMBUY diagnosed the situation based on interviews with key executives and end-users and identified the major opportunities. Interestingly insiders knew best where they were not receiving value for their dollars! OPTIMBUY recommended additional options for the company.
OPTIMBUY was approved to implement a fresh strategy and organization. New job descriptions and accountabilities are defined. Existing staff is trained and coached on new methodologies, tools and processes, hands on as actions to generate savings are implemented.
Suppliers’ contracts are analyzed and the current pricing benchmarked with full participation of existing company purchasing team.
An evaluation of the potential savings is performed based on product rationalization, supplier network consolidation and the target of improvement of compliance to specs.
Specific goals are established to improve performance over a 3 year plan, with much of the savings starting in Year 1 of the plan.
Focus is set on Top 30 major suppliers to review options and renegotiate contracts. Several RFP processes are conducted as well as 3 internet reverse auctions for commodities. Negotiations with vendors were conducted over a 4 month period. Price, terms and conditions were finalized and savings and results initiated to complete satisfaction of client and end-users.
Control and monitoring systems, recommended by OPTIMBUY, are defined and implemented with a high projected ROI.