Case Studies - Hard Cost Savings

Situation

Corporate Graphics International was approached by one of our current clients, the world’s largest research-based biomedical and pharmaceutical company, and asked to partner with them on a new cost saving initiative.  To better understand the money spent and saved through the company’s B2B relationships, a new vendor evaluation process was being implemented immediately.  All existing vendors were asked to quantify, in hard dollars, the savings that their B2B relationship provided to this company and display the impact this had on their bottom line results.  Corporate Graphics International was requested to make a list of hard cost savings we had provided this client over the last three years of our relationship, within five business days.   

Challenges

• A short time frame was given to evaluate the last three years of a relationship that spanned ten plus years
• Many areas of cost savings needed to be identified and evaluated
• A thorough and comprehensive evaluation was very important to the continuation of the relationship

 Solutions 

• Corporate Graphics International’s Strategic Account Representative immediately started to work with key employees at the Corporate Graphics International production facility
• All areas of cost savings and cost avoidance were first defined, then each individual area was researched and savings were listed
• Five major categories were defined

Shipping Savings                                         $40,690
Inventoried Product Savings                   $243,340
Rebrand Implementation Savings        $135,000
Fees Waived Savings                                $36,000
Paper Savings                                            $37,120

Results

• Over $490,000 of savings were explicitly defined
• The client was impressed with the hard work put into this project and especially pleased with the savings they had received over the last several years
• Corporate Graphics International has now implemented a new proactive program offering to track hard cost savings on a quarterly basis