CASE STUDY

Leveraging Supply Chain Management to Facilitate the Strategic Sourcing of Office Supplies

Aug 11, 2017

Category Overview

One of the vital characteristics of office supplies contracts is the differentiation between core items and non-core items. Typically, core items are sold aggressively; whereas, the non-core items are sold around the list price. As a result, organizations have started taking a more dynamic approach to achieve compliance with orders to purchase only core items. A few organizations even involve their office supply vendors to substitute a core item for a similar non-core item when an end user tries to purchase that non-core item.

The Procurement Pain Point and Insights Offered

A leading medical device manufacturing firm wanted to increase their focus on centralized, noncore, and indirect procurement service such as office supplies. Additionally, the client looked-for a business partner who could aggregate and consolidate the spending across all the office locations. Furthermore, they wanted a business partner with appropriate procurement tools who could provide end-to-end visibility and sourcing expertise by standardizing the spend.SE_Demo2

The supply chain management specialists at SpendEdge carried out a comprehensive research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies to cater to the specific category requirements of the client. During the course of this supply chain management study, the client was given insights on purchasing patterns and superior sourcing strategies that were strategized. Additionally, SpendEdge provided benchmarks on the pricing strategies by utilizing strategic relationships with supplier firms, inducing competition, and completing extensive negotiations.

Key questions answered in this supply chain management study include

supply chain management

Business Outcome

The supply chain management study helped the client achieve significant savings over previous year prices. Additionally, the client could experience an improved cash flow and was offered an electronic catalog based procurement process. This helped them generated regular detailed summaries to maintain and control the spending patterns. Furthermore, SpendEdge’s supply chain management study helped the client reduce overhead costs to manage multiple suppliers globally through supplier rationalization.

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