Procurement Solution for Power Generation Client saves costs and improves efficiency

Our client faced having to make payment up front and/or adding new suppliers to SAP, a process that was long-winded and costly for them. Historically, our client had a lot of these third-party transactions being passed through other vendors at excessive margins and they were not getting any added value services or cost down alternatives as a result. Our client also felt that these suppliers were not using their existing vendor base to support these purchases and get best value for money.

Activity

Following meetings with our client to discuss their objectives, we shared respective vendor base data to cross reference common suppliers and commodities. Following analysis, it was decided to take on some smaller straight forward transactions to build confidence and test our service in terms of quote response, pricing and proposal for alternative products or route to market.

Over a period of time, we worked collectively on these ad hoc requirements and also to transfer a group of tail end suppliers for our management. As confidence grew, we were offered more valuable and bespoke transactions to process and manage.

Outcome

Our client achieved costs savings from the outset as some of the requests were for goods from manufacturers that Advantiv had pre-existing relationships with so were able to provide a cost reduction. With our minimal margins on third party transactions, our customer achieved savings as a result and they are also seeing savings against standard requisitions over other vendors for our core product range.

The agreement in place has also resulted in a significant reduction in administration costs throughout the procurement and financial process.