Large group with multiple locations did not have a centralized purchasing function. Expenses were increasing, profits were challenged and the supply base was growing as well since there was no structure to manage the spend function. Executive management was concerned about the growth of expenses and interested in strategies to improve profitability through improved expense controls.
StrategicSource employed their Strategic Spend Analysis engagement conducting a detailed 12 month spend analysis, conducted a spend management Best Practices review, benchmarked multiple expense categories and quoted numerous expense categories with competitive suppliers.
StrategicSource developed implementable solutions for four (4) of the potential 88 expense categories that will generate nearly $1.0MM in annual savings year one and nearly $1.4MM over 24 months based on the negotiated pricing which greatly exceeded original objectives.