Strategic Supplier Identification Process
A global engineering, construction, and procurement (EPC) firm used Requis to solicit bids from three suppliers for thousands of service line items. Results included:
- Five-week reduction in the procurement cycle.
- 100 person-hours saved.
- Ongoing cost savings from reduced small tools, consumables, and master rental agreement (MRA) spend.
Challenge
The strategic procurement team needed to solicit bids for a master rental agreement (MRA) for 2,828 line items of small tools and equipment from three suppliers, utilizing two different price rates in a short time frame.
Solution
The team put together the spend analytics, prioritized strategic cost savings initiatives, and used Requis to streamline the RFQ process.
Part of how Requis does this is through normalizing the baseline pricing sheet. During most bid processes, suppliers may alter the original data sent to them in Excel or send the bid in their own format. Normally this would increase the amount of time spent by procurement professionals on comparing the differences and normalizing the base data.
On the Requis platform, all suppliers must bid against the normalized pricing sheet and upload the alternative quotes/offering separately. This makes the buyer’s job easier and streamlines the overall RFQ process flow for both the supplier and the buyer.
Requis platform’s bid evaluation feature can instantly do a high-level line by line comparison for the buyer with a click of a button. This feature saved countless hours of copying and pasting items from different spreadsheets (and formats!) into one document.
Impact
Aside from completing the project in under two months and saving over 100 person-hours on the project, the new master services agreement (MSA) will drive cost expenditure efficiencies and create better predictability for future lump sum projects. This is a significant competitive advantage for the firm and its clients. This pricing predictability will help the firm successfully secure new lump sum work.
Follow Up Project
The client is now using Requis for its new PPE procurement overhaul. The goal is to standardize and reduce the thousands of SKUs down to a handful of items and to streamline their suppliers list from 19 down to a handful of strategic suppliers, in order to lower the overall cost to support the projects.