Sourcing Case Study
The client mentioned in this case study has chosen to remain anonymous. As the end of 2011 approached, this clients facilities group faced a fortunate Dilemma. They had a significant amount of money left in their budget. The only issue was that it had to be spent before the end of the year or it would revert back to corporate. They needed to look at their options for a partner to assist them in procurement of raw materials, product, signage, and other general materials that are associated with the retail facilities trade.
They came to Patriot to provide a solution for their purchasing dilemma. Patriot was the ideal partner for this project for several reasons, such as:
- Annual product and usage tracking for needed materials.
- Purchasing know how and existing sourcing relationships.
- Transportation expertise
- Storage space
- Web based inventory tracking system.
- Deployment experience
When the end of 2011 rolled around the facilities group at this clients office needed to figure out how to spend the money leftover in their budget before it reverted back to corporate.
The responsible thing to do with the money would be to put it towards stock that would be used for the upcoming year, which is exactly what they decided to do.
Now that they knew what they wanted to spend the money on, they would have to develop a purchasing plan that would:
- Spend timely
- Purchase correct items
- Determine unit amounts
- Achieve mass purchase discounts
They would also have to develop a post purchase plan that would account for the following:
- Affordable transportation
- Storage and tracking for deployment in the upcoming year.
- Staging and planning for project deployment.
Patriot was able to successfully source a budgeted $350,000 in materials needs at the correct levels before the end of the year. This allowed their client to capitalize on their cost savings, plan for upcoming projects, and be more effective with their budget in 2012.