Purchasing Index UK Limited (PI) (the long established providers of Price Benchmarking Services across the UK and overseas) has joined forces with GS Auctions Limited (Group Supplies) (a provider of very innovative auction services) to offer combined packages of their respective services designed to deliver to Clients seamless transitions from Pricetrak revealed specific savings opportunities to new, savings delivering, best-in-class prices to meet - and often exceed - Client expectations.
Wally Johnson, the founder and Chairman of the PI Group, explains that the capabilities of the Group’s Price Benchmarking services to identify specific savings opportunities, already widely acknowledged as unrivalled, still leave the Client with the task of turning Pricetrak revealed savings opportunities into real savings as soon as practicable, a task that has traditionally been left to under-resourced in-house Purchasing teams.
Nowadays, savings deliveries are high on political and Top Management agendas and a special concern for the Financial Directors who are having to exercise increasingly stringent control over diminishing budgets year on year. Business unit Top Management are today confronted with a surfeit of choices for claimed remedial support for procurement shortcomings, many of dubious or unproven provenance including the offerings of corporate purchasing hierarchies and/or the use of internal and external Consultancy led purchasing hit squads who vie with each other for savings delivering roles. Outsourced Purchasing Service providers offer short or long-term take-overs of the in-house Purchasing Department, mostly on shared risk and reward bases in which the same providers aspire to assume responsibility for measuring the savings they will eventually claim they will be making. Emerging from the wings are the e-proc solution vendors ready to re-launch their IT enhancement offerings after recent downturns in their fortunes. Choosing between these options is a fraught experience for CEOs and CFOs.
The PI/Group Supplies combined packages will operate in the following way:
• Client bespoke Pricetrak applications will initially be used to identify specific savings opportunities by establishing the relativity of the Client’s then current prices with those being paid by other PI Clients which for many spend categories will be demonstrably representative of the ‘markets’ for the items in question.
• Group Supplies and PI will jointly use Pricetrak price and market information to develop and implement new Client bespoke, savings delivering, purchasing strategies. The savings delivering process will commence with supplier qualification and electronic ITT stages and culminate in Group Supplies’ managed auction aimed at establishing and maintaining new market price relativities for the client over the period of the arrangement.
• Once the new Purchasing arrangements are in place PI will continue to benchmark the Client’s prices to ensure that the initially favourable, savings delivering, market relativities are maintained and, whenever possible, exceeded.
• PI will ensure the transparency and auditability of the benchmarking process which will include provision for audit trails to public sector accountability standards.
Further information on this new combined GS Auctions Limited (Group Supplies)/Purchasing Index UK Limited arrangement can be obtained from Wally Johnson or Charles Eddolls whose contact details are set out below.
For cash strapped CEOs and CFOs both companies are prepared to offer their services on deferred payment terms, i.e. clients will not pay until the Group Supplies auction has delivered the promised savings that PI have previously identified.
NB All of the above will be managed to conform as may be appropriate with European tender legislation for qualifying procurements.
Purchasing Index UK Limited - E: wjohnson[.]pricetrak.com.