Strategic Purchasing Initiatives Save Money

Most strategic purchasing initiatives are to ensure that you are buying goods and services that are…

  1. Reasonably priced,
  2. Of adequate quality and
  3. 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 
  • Lower the prices that you are paying for the goods and services that are needed to keep your business running 

Are you ready to get started with SpendMap?

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