The highly successful national retailer had enjoyed an extended period of growth and service expansion that exceeded their planning. However, this growth led to limited operational oversight and mismanaged, reactionary processes to keep up with the increased pace of business. Details related to unremarkable essentials like waste management services were neglected, as supplier relationships and costs were ignored for the sake of expediency. The company was no longer competitively bidding out for services needed, and in-turn, was losing touch with market rates and service levels.
The LogicSource team conducted an in-depth analysis of the retailer's waste management program across its 1,000+ U.S. locations, and discovered significant pricing, equipment and hauling inefficiencies, complex manual processes being mismanaged at the store-level and unmanaged excess waste creating environmental liabilities.
Compounding cost and service shortcomings, internal inefficiencies were making it nearly impossible for the retailer to capture any value from its waste management program. The retailer had recently transferred control of program oversight from one department to another. In the transfer, those closest to the waste management program were suddenly moved to other projects, which led to significant knowledge loss and process degradation. On paper, the transition made sense, but in reality, it only exacerbated the company's issues with its waste management services.
"Our seasoned waste management experts were able to educate our client about what a cost-efficient and effective waste management program looks like in today's innovation and technology-driven environment, and laid out a comprehensive plan to achieve this vision," stated Shawn Rouse, Facilities Managing Director within the LogicSource Center of Excellence.
Leveraging LogicSource's $5.6 billion of cross-portfolio spend, real-time market intelligence, OneMarket® technology suite and strategic supplier relationships, Shawn and his team of waste management experts went to market with a highly effective strategy that resulted in a 29% annual save on the retailer's full waste management program.
"By working with an engaged supplier rather than an unmotivated incumbent, the retailer realized immediate cost and operational benefits," said Rouse. "In addition to providing the best pricing, the chosen supplier was very proactive during the RFP process, working hard to understand the retailer's current environment, while proposing new ideas and innovation opportunities to help reduce costs well beyond the 29% savings secured at signing."
LogicSource was purpose-built to drive profit improvement for their clients through better buying. LogicSource focuses exclusively on the sourcing and procurement of goods not-for-resale, which typically represents 20% of a company's revenue and the greatest area of spending inefficiency. Tested time and again in the marketplace, their proven engagement model builds profitable partnerships that achieve 4-15x ROI. Learn more about the LogicSource difference at www.logicsource.com.
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