A Healthcare organization with over 200 locations in the United States and Canada used the usual large companies to supply their bottled water and delivery services for their offices. Each location was allowed to source, hire and manage the chosen company. There were no contracts signed for the services.
Management was concerned with several different areas, since they were able to see each of the invoices being provided to the Accounts Payable department each month.
- 12 individual vendors set up and managed in their AP software
- Over 230 invoices monthly with no way to validate that the water was delivered or additional services provided
- Cost varied based on location for the water delivery with some vendors tacking on additional junk fees
- Locations did not want to contractually obligate the company which led to higher costs
BNDL utilizes Staples as the premier bottled water delivery for its E-Procurement portal, and this Client was eligible to take advantage of contract pricing that was previously negotiated for all BNDL Clients. This amazing economies of scale allowed for a lower rate for the bottled water and the rental of the water dispensers along with supplies that are utilized monthly.
What did we accomplish?
Each invoice was reviewed for the number of bottles that were being delivered, the deposit that was being charged, the cooler rental cost and the additional supplies that were being ordered at some of the locations. Once all services were defined by physical address, there were several locations that had cooler rental units that were being charged a monthly fee, however there were no bottle water deliveries. It was identified that those locations no longer needed the delivery service and therefore the cooler rental should have been canceled however since the location did not realize that the billing was continuing, the fees continued without being canceled. Once all of the service and timing factors were reviewed by location, Staples was able to meet the needs of all 209 locations.
End Result: Reduction of $5,198.53 monthly cost by 37% saving them over $1,914.53 per month and $22, 974.36 annually
In addition, the time savings of the reduction of over 200 invoices per month to 1 was another cost savings in personnel, time and involvement.