CONTEXT

Our client, a major logistics company, had performed consistently over the last five years but had seen its
procurement spend rising faster than its revenue. PIP was engaged to address this imbalance by delivering rapid
savings for the client before the company embarked on a major transformation program.

CLIENT ACHIEVED

  • $10.3m in annual savings across two areas – $5.8m in negotiated benefits and $4.5m in benefits resulting
    from tenders jointly worked on; total savings over a three year period were expected to be over $25m
  • Over 6.5% or $5.3m in savings achieved on 30 nonstrategic contracts with annual spend of $80m
  • Additional savings of over $5m on one of Australia’s largest fuel contracts (over $260m annually) that had
    been aggressively sourced and managed for the last three years
  • Put in place key operational changes and measures to drive further savings in the short and medium term
    through the use of best value suppliers and increase spend management
  • Improved strategic sourcing and negotiation skills across the business and embedded a stronger cost
    management focus

THE RESULTS



Improving Procurement Practices

$10.3m in annual savings at a major logistics company