Large organisations only very rarely streamline their Class C purchases, which by definition are non-recurring and non-strategic. Despite representing seemingly low amounts, they actually generate very high hidden costs.
By accurately evaluating all the organisation's expenses, procurement departments can reduce their Class C purchases. To support and guide them with this approach, Manutan has created the Savin’side method. To assess the potential savings, this unique approach examines all their costs through six strategies:
- Deploy the agreement
- Streamline the product range
- Reduce the supplier panel
- Digitise transactions
- Improve the supply chain
- Promote continual improvement
After carrying out an accurate audit, an appropriate action plan is implemented and regularly monitored.
This video presents the case of Sophie, Procurement Director, who wanted to implement two strategies:
- Reduce the supplier panel by replacing several suppliers with a single vendor
- Digitise transactions by improving uptake of the organisation's e-procurement solution
Sophie ultimately reported a cost saving of 20% and is planning to use a new strategy: an improved supply chain. By bringing its Class C purchases under greater control, her company has raised the efficiency bar and increased its competitive advantage.