Retail

Category:     Refrigeration Systems

 Savings:       $5.3M

 

A convenience and grocery store customer was looking to uncover the lowest possible market price for their over $10M spend in refrigeration units. They approached TradingPartners for assistance in sourcing this highly specified part through a national supplier.

 

In addition to optimizing savings, it was essential to our client to maintain the highest quality and delivery standards. Because of the compliance requirements for this product the supplier pre-qualification process that TradingPartners carried out was essential in assuring that only suppliers whose products conform to the strict environmental standards for energy and chemical usage were invited to participate in the negotiation process. After 94 suppliers were identified nationwide, 15 were able to meet all of the detailed project specifications and were able to participate in the spend negotiation.

 

As part of the negotiation strategy that TradingPartners established for this particular situation, a requirement for warranty was incorporated in the criteria in order to reduce maintenance costs.

 

The spend negotiation event identified an overall savings in excess of $5.3M; over 34% savings. With the client’s objective being at a 10-15% savings, this result far exceeded expectations, not only from a cost savings but also from a time savings perspective as TradingPartners fulfilled the project in 4 weeks from inception to completion.