Savings Snapshot - Plastic Carrier Bags

Situation

  • A European retailor wanted to challenge the existing contract for Plastic Bags printed with company name and slogan
  • They were initially looking to source bags of better quality - but of course also looking for cost savings if possible.
  • Spend £172,000 spend a year
  • Bags delivered to central warehouse and distributed from here
  • Category had not been renegotiated for many years
  • Poor quality of existing plastic bags
  • Wanted to learn more about the market for Eco-friendly Bags, Recycled Paper Bags and Woven Bags, as the business potentially wanted to shift to these at a later stage
  • Wanted to secure a new 3 year contract agreement with a supplier that could offer alternative bags if needed

Solution

  • All requirements captured and included in the eRFP Process
  • 21 supplier invited to take part
  • 12 suppliers were pre-qualified for the eAuction based on a thorough RFP

Result

  • 95 bids received in 50 minutes
  • Achieved a 18.4% saving + managed to secure bags of better quality
  • £31,648 saved every year