Reduction of procurement costs for construction services
Project at a glance
Client: A globally operating retail group
- Execution of a co-sourcing project: Support of the tendering process for new construction and refurbishment
- Standardization / bundling of requirements
- Supplier development
Involvement of suppliers in the innovation process for alternative products.
A number of new construction and conversion projects at various locations have to be completed in a very short time.
Up to now, construction services have been awarded decentral to regionally active construction companies due to the distance involved. This leads to a high number of small suppliers and correspondingly high process costs.
Benchmarking under market conditions does not take place.
Specifications in tenders are strongly tailored to suppliers/products.
Project success: 8-15% savings
After intensive research, the newly found suppliers were systematically pre-qualified by telephone on the basis of the bill of quantities, technical as well as commercial requirements, taking into account the bundling potential for individual construction trades. In coordination with the responsible procurement officers, the new and existing suppliers were invited to tender. In close cooperation with the engineering office, DBC took over the commercial review of the bids as well as the supplier support during the tendering process.
Instead of pricing in the tendered products, suppliers can also offer alternative products with price and/or technical advantages. Following the evaluations, various negotiation strategies are developed for individual construction trades. These include bundling requirements, establishing a strategic partnership, intensifying competition and auctions.
Result of the project: savings of 8 - 15% per product
A broad supplier base and an orderly tendering process are the prerequisites for a successful project. The individual and result-oriented negotiation strategy ensures project success. Project success: 8 - 15% savings