Modern Slavery StatementWhen asked about how Banner managed a recent contract change, David Yates, Category Manager at NWUPC (North Western Universities Purchasing Consortium) shared how investing time and resource into developing a great supplier relationship can lead to getting better value for every £ you spend.
The Problem:
Banner had been approached by their industry partners where raw material, labour and energy costs were leading to calls for increases to many critical core products. Despite their best efforts to work with their suppliers to find cost effective solutions, Banner were obliged to make me aware that a net cost increase was imminent.
In light of the potential reduction of budgets, and a remit from our Members to attain the commercial advantage, a cost increase of any magnitude was perceived to be a non-starter.
The Preparation:
Having analysed the first submission put forward by Banner, it was clear that the vast majority of the “basket of goods” would remain unaffected, but focus would need to be applied to where the prominent price impacts to our members would arise.
The Meeting:
We were both able to outline the key aspects/pressures we were under but agreed up front that that the common goal was to drive towards a solution that would work for both parties.
We agreed that Banner would review the content of the Core Items Basket where an equivalent, but lower priced branded or own-branded product could be deemed to be a reasonable alternative, accepting that whilst the quality may not be an exact match, it would still be fit for purpose. This approach was expected to show a cost reduction for NWUPC, but also maintain or even improve Banner’s margin
The Response:
Banner reviewed their offer line by line and re-submitted their proposal, clearly outlining their recommendations as to where a lower cost product could be substituted for an existing sku. The Category Chair and fellow TWP members were happy with the outcome, and allowed me to implement the changes.
Outcome:
A 1% cost increase request has resulted in a 1.7% decrease – in “Pound Note” terms, this will generate a saving of £30k and avoid a cost increase of £17k, all of which will be applicable from 1st October.
What Next?
Banner are keen to assist any review of office and computer supplies and are committed to help you reduce cost and improve service to you, but above all, can tailor a solution that works best for your facility and team.
To find out how you can achieve all the benefits of procuring through a public sector framework, and the compliancy and efficiency benefits of working with Banner, please contact Ian Dixon by Email, Ian.Dixon@banneruk.com or by telephone on 07734 494896.
