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Project Location: Nationwide
Project Type: P2P Cost Reduction

The Challenge

Working alongside a major FM customer, Rexel have assisted in implementing a number of cost saving initiatives and improved processes for a large public sector customer.
Upon analysis of this account, we found that engineers were travelling to collect products associated with a Purchase Order number, but if products were forgotten at that time, they were required to raise an additional PO number, creating additional costs. Overall the transaction costs were outweighing the cost of the goods.

The Solution

We investigated the market and found that numerous organisations were experiencing this issue, therefore Rexel established a process to ensure administrative costs were kept to a minimum. We set up a P2P process whereby all of the engineers could utilise one PO number, ensuring that any extra products could be ordered using the same PO number. Additionally, we implemented Consolidated Invoicing and ensure products are checked against every line of customer purchases, thereby reducing back office costs and ensuring operations are in line with the customer’s Environmental Policy.

The Outcome

We have assessed the efficiency of this process by utilising a TCO tool which is a a tailor-made system that will identify and quantify all the savings brought to our clients. Meeting the specific needs of customers and sales representatives, provides a detailed explanation of best practices for lowering TCO and highlights the most commonly used items. Using this information, Rexel will submit detailed cost saving reports to customers, ensuring areas for improvement are identified and processes are amended accordingly.