Restructured Top Item List Generates $1.333M in Value

Objective

Optimize savings benefits of repair and maintenance (R&M) Contract Price List through purchasing analysis and supplier negotiation/communication.

Solution

Buyers Access performed an analysis of purchasing history to identify property utilization trends and, to generate a revised top product list. In collaboration with the supplier partner, a detailed communication plan was developed and implemented to drive awareness and adoption of the revised list.

RESULTS

$1.333M

in value creation

200%

increased utilization comparatively to the prior top item list

25%

of overall total purchases driven through top item list, increasing standardization benefits

THE STORY

In a review of supplier agreements, a Vice President of Operations discovered that a top item list had been included as part of one of their R&M supplier agreements. After reviewing the list and is often the case, they found it had gone stale and had become irrelevant. The VP of Operations contacted their Buyers Access Account Manager for support and solution.

The Buyers Access team then performed a comprehensive analysis of historical purchases, focusing on momentum trends of properties to define a recommended revised list. In addition, a recurring measurement and reporting process was established to ensure ongoing relevancy.