Operator Type: Multi-State Operator (MSO) operating in 5 states
Procurement Resources: Centralized team of four, plus retail managers handling purchasing for their locations
Situation:
- Despite having a large team, the operator lacked the resources for competitive bidding and long-term contracting as requested by their new VP.
- The operator had over 1900 vendors, and the accounting team needed help reducing the number of vendors in some categories.
Solution:
- The GPO procurement specialist identified three key high-spend suppliers to target for cost reduction and simplification.
- Moved products to new, GPO-contracted suppliers in two of the three target categories.
- Retained original suppliers as backups or for niche needs.
- Vendor consolidation recommendations reduced the number of office supply vendors from nineteen to five, all with GPO-contracted pricing.
Savings Provided:
Uline Items:
- Janitorial: 18% savings
- PPE (gloves): 22% savings
- Office Supplies: 9% savings
Office Depot Items:
- Janitorial: 15% savings
- PPE: 12% savings
- Office Supplies: 7% savings
Cintas: Switched to GPO-contracted deal, reducing uniform rental costs by 32%.