Case Study Two: Best Pricing. Best Products.

The Players
Fortune 500 manufacturing company (Leading Chemical Manufacturer)
and Tier-One National Minority Supplier for Safety Supplies and Prescription Eyewear

The Member's Needs
As with all manufacturing companies, safety supplies are of significant importance. Sourcing these items involves not only securing best pricing but also the best product for the job. With this in mind, our member company was very stringent regarding its safety products initiative. They not only needed to decrease costs, but gain a stronger degree of confidence that their safety supplies married their application correctly. This was tantamount to ensure the right quality/priced products were being utilized at all their locations. To obtain their objectives, they would need improved intelligence regarding discovery of job-product “fit” as well as better-centralized reporting capabilities. Finally, the member was under extreme pressure to increase its Tier-One MWBE spending.

How Corporate United satisfied its member’s needs
Corporate United was able to provide a world-class supplier that met the member company’s stringent needs. Corporate United’s national Tier-One MWBE supplier was able to distribute to the all the members locations, thus allowing them to decrease their supplier base from 25 suppliers to only 2. With safety being of high importance, not only to our member, but also to our supplier, our supplier company performed numerous on-site product evaluations and injury trends analysis resulting in a measured program to ensure the right product for the right job. These product optimization evaluations not only helped the member cut down on unnecessary products, but also reduced possibilities of injuries due to improper safety supplies for the job functions.

In concert with the supplier, the Corporate United’s implementation focused on creating an online ordering system specifically for this member. The online order system through the member company’s intranet created the ability to monitor the purchases of all the divisions, ensure purchases of the correct products and facilitate improved contract compliance.

As a secondary objective, Corporate United and the member also found significant savings through the suppliers’ prescription eyewear program, which was also made available online through the company’s intranet site. The member company realized a 17% savings on the national prescription eyewear program.
Finally, the member was able to increase it’s true Tier One annual MWBE spend by over $2,000,000 beyond the dollar savings and product optimization contract components.

Savings Snapshot
Members Annual Spend: $3,200,000
Cost Savings: $900, 000 annually, 28% of base cost
Actual ROI: > 4000% (Based on one-time membership fee)

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