The client was unsure of their hoses & fittings pricing competitiveness and had not tendered their supply and service requirements in many years. The site did not have the time to manage the tender and put in place the supply and repair service contracts.
Strategic Sourcing of Hoses & Fittings (vendor managed stock) and On-Site Hose Repair Services:
- Defining requirements.
- Developing a tender strategy.
- Managing tender & negotiations.
- Developing supply contracts.
- Contract Implementation.
Caliba was engaged to manage the sourcing process and delivered the following outcome:
- Transitioned to one supplier for the site that provided an on-site container with vendor managed inventory and a hose repair service..
- Significant cost reduction through unit price and efficiencies of having one supplier on site.
- KPIs in the contract to measure supplier performance.
- Price increases capped at CPI movements.