MWB and AHG Group Stationery Contract consolidated with one supplier

MWB and AHG took a decision during 2009 to group their purchasing volumes across both parts of the business. The intention was to drive best practice and efficiency throughout the Group by harnessing the benefits of single supplier sourcing.

Overall the MWB/AHG Group were trading with 13 suppliers across the Group with an annual spend of £1.4 million. The contract award reduced the number of suppliers the Group now deal with from 13 suppliers of varying capabilities, to one supplier with a best in class pedigree. This new deal with one supplier will reduce annual spend to £800k and save the Group £600kpa in product cost savings alone, before taking into consideration other ‘soft’ savings that supplier consolidation brings with it.

 				13 suppliers £1.4m pa*

    		 		1 supplier £800k pa

The new contract award took place in July 2009. By September 1st 2009, all sites were live and trading.

All sites are configured to trade online, with online authorisation where required to make the ordering process a quick and easy task. Ordering templates are available to make finding the products required a simple task to allow MWB/AHG to concentrate on managing their core business.

Seafood spend of almost £3 million across 2 brands and 8 suppliers consolidated to 2 suppliers

• Consolidated £2.5 million spend p.a. across brands. 4 suppliers consolidated into 1.
• Total saving of 9.9%
• Monthly “cost plus” pricing mechanism which can be audited at any one time.
• Opportunity for contracting volume products in with the suppliers volumes. (such as salmon)  Ensuring the operators get the most competitive price and stability on volume/key products.

• Consolidated £265,000 spend p.a. across business. 4 suppliers consolidated into 1.
• Total saving of 11.14%
• Monthly “cost plus” pricing mechanism which can be audited at any one time.
• Opportunity for contracting volume products in with the suppliers volumes. (such as salmon)  Ensuring the operators get the most competitive price and stability on volume/key products.