Most strategic purchasing initiatives are to ensure that you are buying goods and services that are…
- Reasonably priced,
- Of adequate quality and
- Delivered reliably when you need them.
Industry experts agree that a 2% to 5% price reduction can be expected for all purchases that are brought under management (e.g. consolidate spend and negotiate price discounts/contracts with preferred suppliers).
For a small company spending, say, $2 million per year, this represents a minimum $40,000 savings, while a midsize or larger organization that is spending $10 million per year can expect to save more like $200,000 to $500,000 annually.
But you need visibility and control!
After a year of using the system, I saw that we were spending $2M plus with one vendor. With the information that SpendMap provided, I was able to negotiate a 9% reduction on all new purchases with that vendor. This savings alone paid for the system many times over.
– Eric Gilmore, Purchasing Manager, ACI Worldwide
Within three months of using SpendMap I was able to get a solid purchase history on our most commonly used items and parlay that into a Preferred Vendor Program that reduced our overall costs by 12%. So for every million dollars we reduced our spend by $120,000. That kind of savings pays for the system and then some, like a new piece of equipment to make us more competitive.
– Louis Titano, Purchasing Director, McKella280
SpendMap provides easy access to accurate spend history, which can be used to…
- Rein in maverick (off-contract) purchasing and spot-buys
- Analyze spending history
- Understand purchasing trends
- Evaluate supplier performance
- Identify volume pricing opportunities
- Gain leverage in negotiations
- Reduce the prices that you are paying for the goods and services that are needed to keep your business running