Several competitive sourcing events were conducted in the categories of; movement of household goods, temporary accommodations, and real estate services

Policies were collectively reviewed and benchmark separately for domestic and international relocations

Insurance policies were also reviewed

The outsourcing agency was required to use the retailer’s suppliers in lieu of their own. Savings exceeded 10% and hit $450K/year

A 3rd Party insurance provider was found to be redundant and terminated, Saving was approximately $100K/year

Although arguably a savings but at least a significant cost avoidance, was the approval process for exceptions to policy. Exceptions to an already very generous policy were considered verboten. Cost avoidance was >$500K.

Analyze the client company’s existing contracts, box specifications, service requirements and spend history<

Configure the corrugate should cost model developed by S&A to the client-specific products and requirements

Competitively bid the business with capable suppliers capturing additional data (or on one occasion engage in direct negotiations without a tender)

Utilize information garnered from the RFP to enhance the should cost model and negotiate for final results

In all instances clients saved significantly over historic pricing levels (in many instances 10% or more)

The model allows the client company to effectively manage pricing over time (increases and decreases) fairly

Though alternative suppliers were seriously considered for the business, in all of the above instances the incumbent supplier was awarded the business even if their pricing was slightly higher as to not to interrupt operations

The consultant convinced the Ohio State University to collaborate with Ohio’s three retirement systems

The retirement systems’ spend dwarfed that of the university

Several competitive sourcing events were conducted by the parties

Agreement were made to have one formulary pharmacy management program

Aggregated the pharmacy spend of Ohio’s three retirement systems and that of the Ohio State University to create a virtual pharmacy consortium with $1B in annual spend.

Net savings for the University was $3.2M/year

Net saving for the employees was $900,000/year

Rx Ohio Collaboration/Pharmacy Benefit have grown to over $3B in annual spend

Established a should cost model demonstrating a minimum gross profit margin of 29%

Found labor and equipment pricing to be inflated as much as 300%

Improved KPIs and Price Adjustment Mechanisms to ensure sustained value over the life of the contract

Team developed the experience and repeatable processes to carry out in future sourcing events and negotiations

A competitive sourcing event was conducted with the intent of qualifying a Manager Service Provider (MSP) and a handful of sub-vendors
Bidders could elect to bid as the MSP if their offer included a Vendor Management System (VMS). Otherwise they were to bid knowing they would become a sub-vendor if awarded

Down selection resulted in a prime vendor award as the MSP along with four sub-vendors that were are incumbent suppliers.

The selected MSP did implement a VMS in six weeks that; standardized the requisitioning process, automated time keeping and approval, and provided near “live time” reporting that was previously unavailable.

Labor savings of $6M were obtained in the first year of operation

Live time reporting resulted in a reduction of force by four FTEs in Finance and two in Supply Chain

Achieved a 16% reduction in cost year over year through a competitive RFP process

Consolidate volumes into 4 key suppliers ensuring continuity of supply and strategic alignment with key vendors

KPIs and PAMs were developed and in place to ensure value is maintained over the life of the contract

Team developed the experience and process to continue to process repeat it

Client achieved a 7% price reduction in hauling rates, and 22% reduction in standby rates (in an inflationary market)

Dispatch protocols were updated to reflect 3rd parties for longer hauls, and private fleet for shorter hauls

Electronic billing with standby reports daily were required with anticipation to reduce unjustified expenses, and ease passing to customers (when applicable)

Price adjustment mechanism was included in the contract based on the should cost model – price transparency through contractual term

Client achieved a 7% price reduction in hauling rates, and 22% reduction in standby rates (in an inflationary market)

Dispatch protocols were updated to reflect 3rd parties for longer hauls, and private fleet for shorter hauls

Electronic billing with standby reports daily were required with anticipation to reduce unjustified expenses, and ease passing to customers (when applicable)

Price adjustment mechanism was included in the contract based on the should cost model – price transparency through contractual term