Archives: Case Studies

CHALLENGE

Being that duct tape is a relatively inexpensive product, and was only requested by one client, the quantity originally provided to the Procur team failed to meet the Procur minimum purchasing amounts.
Not allowing this to impede the desire to satisfy a client’s request, the team then began to make inquiries with all its billboard companies to see if they would be interested in developing a Procur purchasing program, thus creating a volume large enough for the team to begin its process.

ASSESMENT

Only once the Procur team was able to aggregate numerous duct tape opportunities was the confidence the team would be successful in developing a duct tape program.

PROCESS

The Procur contract team began the complicated task of reaching out to literally dozens of duct tape manufacturers providing the common spec of all the billboard companies. In this particular case the duct tape industry failed to believe that the Procur team was actually serious in bombing the quantity of duct tape requested as it would instantly make Procur the largest buyer of duct tape globally.

Once the industry began to realize the role of Procur, the duct tape manufacturers entered into the Procur invitation for bid process and the best candidate was selected.

RESULTS

Procur became the largest buyer of duct tape in the world and was able to supply almost an entire industry with more favorable pricing than they had prior.

CHALLENGE

With the world facing the Coronavirus Pandemic, many companies responded by having their workforce work from home. This too was the case of several Procur clients which moved the bulk of their workforce to home offices creating the need to purchase both laptop computers and headsets for their staff to be able to continue with their efforts. This, at a time literally thousands of companies were looking to purchase the same products which created both a global shortage and difficulties in negotiating for a more favorable program.

ASSESMENT

It was anticipated that numerous vendors would need to be contacted to first confirm the availability of products that met the client’s demand. Only then, could the negotiations begin in order to develop a more favorable purchasing program.

PROCESS

The Procur contracts team reached out to the majority of the quality headset manufacturers and the leading laptop manufacturers in order to first confirm the client spec was able to be met. Next, availability had to be guaranteed for the large quantities of product the client was purchasing.

RESULTS

By aggregating the purchase of numerous clients, Procur was able to expeditiously provide both the laptop and headset requirements for its clients while using the client’s inventory credits as partial payment for the purchases. All specs and delivery schedules originally set forth by the client were met.

CHALLENGE

One of America’s largest out-of-home advertising companies turned to Procur to review its upcoming $4 million purchase of airport electronic billboard displays. The challenge was the extensive seven-page spec that the displays must meet severely limiting the potential for Procur to shop and negotiate a better opportunity.

ASSESMENT

Advising the client that it was doubtful that Procur would be successful, Procur still accepted the challenge in order to hopefully benefit its client.

PROCESS

The Procur team reached out to its sister company, International Offset Corporation in order to have a global reach for the procurement of the displays. Most of the displays at this time were manufactured in China however, with the extensive spec, most companies failed to meet the client’s demand. The Procur contract team was diligent in the pursuit of the right manufacture for its client.

RESULTS

Ultimately, despite all odds against success, Procur was able to identify and negotiate for a 20% inventory credit for the client, a cash offset of $800,000.

Through a unique program originally conceived of by Procur, One of America’s larger cell phone providers was able to capture market share and offset cash obligations for a national billboard campaign.

CHALLENGE

The cell phone service provider was an existing billboard user throughout the entire United States. Normally, once a client is working with suppliers it is difficult to take an existing relationship and renegotiate that into a Procur inventory credit contract.

ASSESMENT

Being that the cell phone service provider was enjoying substantial growth, the Procur team created a program in which the billboard companies would be guaranteed their current annual advertising revenue values and the contracts which Procur would provide would be for an amount over and above the prior advertising amounts.

PROCESS

Procur negotiated with numerous billboard companies in order to educate each billboard company as to both the benefit of the new program and exactly how the program would beneficially impact their company. Substantial efforts were made in order to guarantee the current income levels to the billboard companies while at the same time allowing for Procur program to be implemented.

RESULTS

Procur provided millions of dollars of billboard space to the cell phone provider and in exchange for cell phone services offset four million dollars in cash expenditures.

The dual advantage of this program was, in addition to the cash savings, the cell phone inventory provided to Procur by the client was restricted to new clients that were using the client’s competition for cell phone service, thus providing an increase in market share.

CHALLENGE

One of America’s largest apartment and condominium builders and operators used Procur to purchase a mélange of building materials using its empty apartments as partial payment through a procurement program developed and implemented by Procur. Having been in the building industry for over thirty years, the client had established very favorable price points with reliable suppliers.

ASSESMENT

As the Procur team reviewed the clients purchasing habits and products, the team quickly realized that the client did indeed have very favorable pricing. Providing a more beneficial purchasing program would indeed be a challenge.

PROCESS

Procuraggregated the clients purchases with several other existing clients purchases which created a larger demand and opportunity for the potential suppliers thus creating a more favorable environment for Procur to deliver a better purchasing opportunity and for all its clients in the building industry.

RESULTS

Procur was able to source and purchase microwave ovens, regular ovens, dishwashers, stoves, refrigerators, and carpet meeting the client’s specifications and existing price points. Through the Procur Procurement program the operator was able to save millions of dollars in hard cash using its vacancies as an alternative currency and conserved capital for future building projects.

CHALLENGE

One of America’s leading media companies with numerous offices throughout the U.S. elected to consolidate their local market branches into regional management centers. The company had a $30 million budget to Procure new office furniture for the centralized regional centers.

The company spent months determining the best office equipment for their new spaces and had negotiated for the best pricing available to them. The company then turned to Procur to determine if we could acquire the same furniture within the same price point but with Procur providing a financial advantage using the Procurement system.

ASSESMENT

Not having been in the office furniture space prior, Procur needed to not only establish a relationship with Herman Miller, the clients preferred supplier, but also to numerous other office furniture manufacturers in order to provide spec and further negotiate for a more favorable cost structure than the client had had prior.

PROCESS

The Procur contract team entered the marketplace and spent weeks discussing the exact spec of the clients demands. Substantial in nature and quantity, the in-depth discussions were, at best, difficult and time consuming. The transfer of the clients engineering diagrams and facility layouts had to be reviewed by all prospective suppliers. The Procur team had to confirm that all of the proposals were indeed what the client had ordered.

RESULTS

Procur matched the company’s very specific product demands meeting the same benchmark pricing and delivered the program to be inclusive of a 50% inventory credit saving the company over $15 million in cash.