Hitting a double and enjoying the savings!
Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing, Inc.
This is the third entry in the Baseball Season and eProcurement series. In the previous posts in this series, we highlighted some examples of how SafeSourcing customers have achieved and enjoyed hitting a Single. At SafeSourcing a Single is achieved when a customer attains between 5% and 9.99% savings in their online Request for Quote (RFQ) Events.
Today’s blog post will similarly review some examples of when our customers have hit a Double. SafeSourcing defines a Double as between 10% and 14.99% savings. Hitting a Double is a very good outcome for any category. In future installments of this series, we’ll focus on Triples, Home Runs, and Grand Slams.
The first example we will review is for bottled water. One of SafeSourcing’s retail customers was due to source the bottled water that they sell in their stores. They had the impression that given the limited number of suppliers that they were aware of that could support their network of stores, that negotiating this category was not possible. While this category does only have a finite number of suppliers based on any given geography, there are plenty to be able to host a competitive RFQ Event. In this case, five suppliers quoted including their incumbent. Their incumbent is a large and well-known national brand. As a result of the competitive bidding process being paired with the vendors that SafeSourcing identified and brought into the live RFQ, the customer was able to achieve an impressive 13.84% savings. Best of all, this low quote savings came from their incumbent supplier which meant they would easily attain the savings beginning with their next shipments.
Our next example is from another retail customer that operates many pharmacy locations and sells a wide variety of items in their stores. One of the categories that we focused on with this customer was their propane tank exchange service. This has become a common category for RFQ as there are several suppliers that operate nationally and many more that operate regionally. The incumbent supplier is one of the largest national suppliers in this category. Again, SafeSourcing identified and brought in three additional suppliers that were qualified and capable of servicing this customer’s locations. The result was a 14.48% savings. It was nearly a Triple. Here again, the customer was able to lower the price substantially while retaining their current source of supply.
There are many results like these and there are interesting stories including great savings dollars behind each. In the next entry in this series, some examples of Triples will be shared.
If you’re interested in learning more about how RFQ Events can help your company advance the bases and achieve savings, please contact SafeSourcing.