Bank
A Hungarian branch of a multinational company contracted our company to analyse their purchases and indicate areas where purchasing was inefficient or overpriced, and to involve suppliers in competition. Within the framework of this task, we prepared a so-called quick view in the first phase. This study analysed the relationship between suppliers and spending money and helped select purchasing issues which we later dealt with in details. Thanks to this quick view, the company obtained valuable extra information about spending money because such aggregated data may only be mapped to a limited extent and only partial data were available about spending/procurement kinds (i.e. what and how many pieces the company bought).
We developed detailed schedules for the selected areas and then started to prepare purchases: write specifications, include corporate requirements in the tender document and bid for written offers.
In the majority of cases, we used the auction tool for price negotiations. We discussed the result of the price negotiation with our customer and the customer decided which supplier it wished to contract with.
We supported our customer by our sourcing knowledge required for contracts and contract templates so that items of an economic character may be defined in the contract for the given purchase and quality and delivery may be controllable. (Legal verification was performed by the company's lawyers)
In the next step, we prepared data of the contract(s) in a database which enabled our customer to take over these data in its contract record-keeping system (our company also assisted in creating this record-keeping system).
The company summarised the results achieved in co-operation:
- Significant savings were created for purchases where they could not use opportunities to reduce prices due to lack of resources or specific knowledge.
- They obtained a more accurate picture of purchases and individual spendings.
- Their contracts became economically more structured and more favourable for them.
- Contracts were recorded in their contract record-keeping system.
- After the purchases, we handed over a measurement figure system to measure suppliers' performance so delivery became easy to measure.
- A purchaser (in the present case, an external company, i.e. Electool) was placed between corporate requesters and suppliers which increased quality and efficiency for the company.
The company was satisfied with the results, the so-called outtasking method and initiated further co-operation opportunities in the area of cutting off transaction costs.
In addition to savings, its satisfaction had two other main reasons: one was that efficiency within the company was improved by supporting individual organisational units, the other was that the - emotionally - more difficult part of negotiations with suppliers was taken by an expert company (and technology).
