- Disjointed supply chain management
- Lack of internal forecasting for global requirements
- HPE Chassis switches
- Tightly controlled Vendor bid process
- Multiple rolling orders of between £50,000 and £150,000
This organisation had a very disjointed global procurement strategy, buying from different vendors in different regions with differing levels of vendor price support.
Once long term partner Port-P started to see a pattern in some of the requirements in early 2014, most notably with regards to HPE network devices, they sought to meet with the end user to further explore and understand the long term requirements and business objectives.
As it stood, this client was buying kit locally in each region (EMEA, APAC etc) with no consistency in price, and also importantly, no proactive engagement with a local Reseller or the Vendor, HPE.
After the initial meetings in which Port-P was able to establish the global reach of the network refresh projects, they invited in an account management team from HPE to be part of a more formalised approach to forecasting of equipment.
This collaborative and strategic approach enabled Port-P to secure much higher levels of discount from HPE, and also establish a fixed ‘price book’ for the key repeatable items being ordered.
This approach continued throughout 2014 and into 2015, with regular meetings with the client to ensure that not only were Port-P able to continue providing equipment at the required price, but also that they were managing the order process closely with HPE’s supply chain to ensure project orders were delivered efficiently and within the project deadlines.
Results and Conclusion
Prior to Port-P’s close involvement, this organisation was seeking quotes quite literally from all around the world in order to get pricing for a raft of ongoing local network refresh projects.
This was proving to be a very time intensive task for this company’s purchasing team, preventing them from analysing other areas of the business for potential cost savings.
By leveraging their long term and highly accredited partnership with HPE, Port-P were able to secure a continued level of discount that meant the customer was happy to work with just one HPE partner locally in the UK.
Alleviating this administrative burden allowed the customer to spend extra time looking into other purchasing arrangements and found that as a multi-vendor supplier, Port-P were in fact able to source many of their requirements at far more attractive price points.