Interior Products Provider Streamlines Freight Management and Achieves 26% Savings with Procure Analytics

Member Profile

The member is a leading provider of interior products and services in the residential and commercial markets. With a focus on design and execution, the company operates numerous locations across the United States, catering to a diverse clientele in the building and renovation sectors. Among other indirect procurement categories, freight is a significant area of spend for this company.

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Freight Management Challenges

Before partnering with Procure Analytics, the member encountered several challenges in their freight management processes:

• A decentralized program, leading to each location independently purchasing transportation services.
• Unmanaged spending across multiple providers, which prevented leveraging their collective spend for competitive discounts.
• Restricted access to essential data and reporting, limiting visibility into overall freight operations.
• Insufficient controls and oversight within the program, resulting in inefficiencies.

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GPO+ Approach for Freight Spend Management

Procure Analytics provided a comprehensive freight management solution to address the member’s challenges by:

• Consolidating spend under the Procure Analytics freight program, utilizing a single third-party logistics (3PL) strategic partner to negotiate competitive discounts.
• Streamlining the procure-to-pay process through the adoption of a best-in-class transportation management system, complementary to the PA program.
• Developing a customized Key Performance Indicator (KPI) scorecard to effectively measure supplier performance and enhance operational accountability.

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Results

As a result of joining PA’s GPO program, the member achieved annualized savings of 26% through the competitive contract secured by Procure Analytics. PA’s experts helped implement best practices that enabled the member to efficiently manage day-to-day freight operations. The member also gained access to customized reporting and comprehensive data, improving their spend visibility and management capabilities.

The member company is also part of PA’s MRO group purchasing program for their US locations, and is working with Amicus Spend Management on solving their tail spend challenges.