Savings Snapshot - POS Prints

Situation

  • Our client had never used eSourcing before, so they were very keen to make savings on this first project
  • They had been working with the same supplier for Point-of-Sale (POS) Prints for years - they wanted to put the contract out to a competitive tender process to get a better understanding of market prices and suppliers capabilities
  • Spend was about €1,000,000 a year
  • Prints delivered to retail sites across United Kingdom once or twice a month
  • Quality of the printed material is key as it is handed out to customers to promote the products
  • The business was reluctant to switch supplier, and not at all ready to consider suppliers they didn't already know
  • Only the incumbent + 5 other suppliers could be included in the tender process

Solution

  • Initial RFI conducted with the 6 suppliers to get a better understanding of supplier capabilities and their interest in the business
  • 3 suppliers - including the incumbent - were shortlisted and invited to meet the stakeholders face-to-face
  • The 3 suppliers were asked to bring product samples for the meeting allowing all stakeholders to see and feel the quality of the prints
  • The 3 remaining suppliers invited to an RFQ with a clear message that there would not be any further rounds of price negotiations and that the supplier with lowest price would be awarded the business

Result

  • The two-step process - initial RFI and then RFQ - proved successful as it quickly pointed out the 3 most interesting suppliers
  • The incumbent supplier reduced his prices with approximately 30%
  • One supplier quoted more than 50% lower than current prices
  • After just a few months all stakeholders agreed on that the new service was actually better than the previous one
  • £520,558 savings identified -52.89%

 

 

 

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