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Submission: On October 06 via api from US — Scanned from DE
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Submission: On October 06 via api from US — Scanned from DE
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Narrow Focus. Deep Expertise. Let Us Go to Work For You.
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HOW A MAJOR FOOD PACKAGING COMPANY ACHIEVES 20%+ SAVINGS EVERY YEAR ON MRO SPEND
Home » Case Studies » MRO
OVERVIEW
A food packaging manufacturer connected with Procure Analytics’ group purchasing
program for MRO supplies. While the Member’s 50 production facilities were
moderately consolidated with an incumbent supplier, PA’s program showed
significant savings opportunities if the company switched suppliers.
MRO CHALLENGES
To achieve initial benchmark of 15% savings on existing spend, the food
manufacturer agreed to converting general MRO to PA’s preferred supplier. This
included changing out 270 vending machines at the facilities and getting local
purchasing managers on board with converting suppliers.
APPROACH
PA pilot tested among a handful of facilities near member headquarters in order
to show proof of concept and visibility of spend and savings. The company’s MRO
purchasing included messy and missing data. This prompted PA and PA’s supplier
to visit multiple sites and confirm records against location inventory.
These site visits included checking inventory in the Member’s existing vending
machines. In many cases, the company had no on- hand inventory records and PA’s
Supplier physically took pictures of the machines and assessed their inventory
levels at each site.
After the two month pilot, PA coordinated full roll out to all facilities, and
installed 270 new vending machines.
After roll out, PA’s focus pivoted to compliance tracking and approved-PPE list
tracking.
MRO SAVINGS RESULTS
Under normal circumstances, installation of new, stocked vending machines at one
location would take 30-60 days. PA and PA’s supplier installed machines at 40+
locations with 90 days.
The site-level approach combined with a strong corporate sponsor drove adoption
during conversion to the new MRO supplier. PA’s team tracked compliance by
location and visited Member sites regularly to ensure smooth implementation.
These hands-on methods lead to beating initial expectations.
By the end of Year 1, the member company’s realized value of joining PA
outperformed initial benchmark at 20% actual SKU-level savings.
PA didn’t stop there. Each year, Procure Analytics works with the member company
to consolidate and optimize spend to grow savings.
Learn how PA can help your Procurement Team drive double-digit savings for
free.
Contact us today!
LET US GO TO WORK FOR YOU
Learn how we can leverage our $1.5B+ spend and procurement expertise for your
business.
Schedule a Call to Learn More
Procure Analytics (PA) is the premier data-forward group purchasing organization
specializing in Maintenance, Repair, and Operations (MRO), Packaging, and
Freight.
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