Finding the Optimal Purchasing Strategy

CASE STUDY: STRATEGIC PROCUREMENT DECISIONS

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Situation

An asset management client wanted to implement a national purchasing strategy for electricity because of the perceived benefit of aggregating its entire portfolio.


Solution

We conducted a request for proposal process for the client, and the results indicated that national suppliers were stronger in some areas versus others. Our analysis revealed that a regional approach would allow our client to select the best bid from the strongest suppliers in each region.

By including regional suppliers that have a market niche and better pricing in one region, but who would not have been included in a national purchasing strategy, we were able to maximize the value of the contract for our client.