Company Overview: $3B Public Company (Construction)
Business Background & Facts
Supply Category: Office Equipment – Copiers/Faxes
Buyers: Corporate Headquarters, Sales & Manufacturing Locations
Historic Cost: $3 million
Client had one primary supplier and two to three additional suppliers
Pooling agreement in place to bill for copies utilized on a monthly basis
Copy volume had decreased significantly since the contract inception
Interested in utilizing digital technology as a total printing solution
Internal management of spend was decentralized and no controls were in place to determine when to add new equipment and what type of equipment should be added
Approach – Negotiations/Consumption
- Collected information regarding company-wide copy usage and purchasing policies and practices
- Analyzed total cost for stay per property – – room rate, communications, parking, meals, etc
- Benchmarked rates against internal databases
- Determined strategic approach for negotiations
- Identified demand management opportunities and alternative sources (long term stays)
- Lease optimization: Shift from Owned to Lease and from Lease to Lease on demand
- Selected key global real estate firms and set up database to globally manage our real estate costs and support footprint optimization.
- Optimization on utility, facility management and property tax.
$1m (33%) in annual savings. Client was able to rollout digital equipment at a lower cost than existing analog equipment. Supplier reporting was developed and management controls were put in place to monitor usage and track costs going forward.