CASE STUDY - OFFICE SUPPLIES

Opportunity:

PMA was hired by a non profit organization to assist in reducing the costs of their office supply expenditures.

Challenge:

The organization has several divisions, and all were purchasing office supplies from seven (7) main suppliers. Relationships had been established, but there were no contracts in place, multiple account numbers with the same vendor, negotiated rates, and no set policy in place. The annual “Pure” office supply annual spend was roughly $74,000.00.

Strategy:

PMA employed the following strategy:

• Compiled a list of all office supplies that were used over the previous 12 months, in order to determine historical usage.
• Assembled a team of end users from the organization to ensure requirements and service levels were met to their satisfaction
• Bid a consolidated volume to five (5) best in class suppliers
• Conducted vendor presentations with the top 3 vendors that were chosen by the team
• The team selected one (1) bidder to be the Prime Office Supply Vendor for the entire organization.

Savings Achieved:

As a result of consolidating usage and choosing a prime vendor relationship for all divisions to use, PMA was able to negotiate a 49% savings for this organization.

Annual Savings Achieved = $36,622.98