Category Services - Commodity Management
PROACTIS provides commodity management services through
category supply partners that specialise in
ensuring you realise the lowest prices and best value for a number
of different tail-spend categories.
Categories covered include stationery, paper, catering,
janitorial items, workwear, workplace environment products,
lighting, print services, in-house print management, business
machines, office furniture, promotional items and more.
A Representative Scenario
One of the most common categories within tail-spend is
stationery and other office supplies.
Problem:
- The category includes tens of thousands of individual
items
- Items often have high end-supplier mark-ups and are purchased
very frequently
- Items are purchased in every location, by many different
employees, from many different suppliers
- Although the cost of individual items is low, total annual
spend is high
Typical approaches:
- Basically ignore it - allow each location and employee to buy
from whoever they choose; no consolidation; no discounts
- Contract with a large national supplier offering a few items at
'loss-leader' prices but only nominal discounts off retail price
for most items; many purchases still made off-contract
PROACTIS solution (one example):
- Utilise PROACTIS' partner service to act as
the category expert and supplier
In this case, a partner that specialises in continuously offering
the lowest overall price mix on quality office supplies by
negotiating direct contracts with original manufacturers and
managing the logistics of direct delivery to you. This eliminates
all of the associated costs for one or more levels of the supply
chain, with the savings passed on to you.
- Consolidate organisation-wide purchases to the
selected supplier
- Use PROACTIS P2P punch-out capabilities to
enable employees to quickly and easily find what they need and
purchase it from that supplier with full compliance to
authorisation policies
- Leverage partner and PROACTIS electronic invoice
capabilities to capture invoices (consolidated, if
desired)
Result:
- Significant savings on purchases through a
specialised approach and consolidated spend
- Significant savings in Accounts Payable
manpower requirements
- More time in Procurement to concentrate on
other categories
Why not put our category experts on your team today? Contact us to learn
more.
