SpringTide generated a saving of 53.7% on a £43,200 spend through the use of effective facilities management.
A national refrigeration organisation with six locations around the UK required beverage dispensers at each of their site. Currently, the cost of each dispenser was on average £23.75 a week, and they required 7 beverage dispensers in total.
The current beverage dispensers were provided and serviced by a local provider, therefore the company had so far accepted any annual price increases without query. The refrigeration organisation required a review of their supply in order to generate synergy within their supply chain and cost across all their locations.
SpringTide undertook a range of approaches to generate a significant saving for the organisation. They solicited proposals from service providers that were willing and able to distribute and service all their sites.
We standardised the service provider, which would create efficiency of supply and also standardise cost. The strategy was to deliver a cost saving as part of the overall category management strategy and then move on one the deal was completed.
SpringTide negotiated a 5 year fixed price deal with a national provider of beverage dispensers. The deal included out of hours service, and payment terms of 60 days End Of Month (EOM) was agreed.
The original annual cost for the beverage dispensers was £8,600, but SpringTide negotiated a deal of £4,000 a year, fixed for 5 years.
Reducing the dispenser cost from £23.75 a week to £11 a week has created a significant 5 year saving of 53.7%.
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