Flow Control Products Manufacturer Saves $400,000 After Joining PA’s Group Purchasing Organization

Member Profile

The member is one of the world’s leading providers of mission critical flow control products and services for the Industrial and Aerospace & Defense markets. They employ over 1,000 people and offer a wide portfolio of innovative flow control products including pumps, valves, regulators, actuators, switches, launchers, sensors, and more.

The member is a portfolio company of a top 5 private equity firm.

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Indirect Spend Challenges

The member had a pre-existing relationship with one of the suppliers in PA’s MRO program, but the partnership had been fraught with issues related to personnel and communication, creating tension and friction.

These challenges prompted the member to consider issuing a Request for Proposal (RFP) for their MRO spend in order to explore alternative supplier options.

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How PA Helped

The member’s private equity owner had worked with Procure Analytics for MRO spend management in over 40 of its portfolio companies, and understood the value of PA’s GPO+ approach. The PE firm introduced them to PA with a two-fold goal: to repair the relationship with the current supplier and to improve their overall MRO pricing. The PA team jumped into action

First, the team implemented an MRO expectations document to outline clearer communication and operational standards. The goal was to create expectations and accountability for both the member and the supplier, as well as PA’s role.

Next, the PA team worked with the supplier to appoint a new national account manager assigned to the member, with the overall goal being a complete reset on the relationship.

Finally, in tandem with rearchitecting the relationship model, PA’s implementation team focused on supplier consolidation efforts to drive savings and improve the member’s current MRO pricing.

PA initiated a 90-day trial period to assess whether improvements could be made, ultimately focusing on enhancing the member’s experience with the supplier.

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Results

Because of PA’s intervention, the member’s relationship with the MRO supplier drastically improved, with their MRO spend growing from $4.2 million with the supplier to $5.9 million. By joining PA’s GPO program, they saw over $400,000 in savings.

The member has expanded its involvement with PA, exploring onsite MRO solutions in its US manufacturing locations as well as leveraging Amicus Spend Management for its European tail spend.

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