Collaboration leads to huge cost savings for Manchester City Council
MANCHESTER CITY COUNCIL has reappointed Banner Business Services to supply its office stationery and supplies after the company succeeded in reducing the Council’s spend by 40 per cent on items over the past three years.
Banner account manager Mark Airey has collaborated closely with the Council’s procurement team to introduce a number of measures that have led to a decrease in the Council’s expenditure on these commodities over the last three consecutive years.
Cost-saving measures have included:
- Management of core lists
- Introducing an automated electronic ordering system
- Replacing key items with Banner own brands
- Improving delivery schedules
- Introducing restricted purchasing controls within the Council to reduce expenditure
“We’re confident that the figures for the last twelve months will demonstrate a further reduction in spend.
“This is a great example of collaboration in action and shows how organisations can reduce their costs by taking a long-term approach to building supplier relationships and efficient contract management.
“As bizarre as it may sound, we really do want to help our clients reduce their costs. We proactively suggest cost-saving initiatives on an on-going basis throughout the life of a contract.
“This approach means we develop and nurture longer-term customer relationships. Banner trades in an ethical and transparent manner, reducing customer costs and thereby retaining contracts. It’s good old fashioned business sense and a win-win for all concerned.”
Stationery spend at the Council has reduced from £916,515 in 2009 to £837,047 in 2010 and £624,067 in 2011.
Expenditure is projected to decrease a further 15 per cent for the last financial year.