Case Studies

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.