The public sector,

Optimization of supplier agreements for public infrastructure activities

A large Danish public organization needed to achieve a more cost-effective supply of critical components for its daily operations. These components were custom designed by two international suppliers that hold a monopoly position. The components themselves were approaching their “end of life”. However, despite a poor understanding of future needs and the current installed base, the organization was preparing to purchase a quantity of components which would cover 10 years of consumption.

Therefore, Prokura undertook a project in three phases to optimize future contracts.

  • Phase 1:develop a fact-based overview of the current base of installed components and subsequently derive a demand model for these components.
  • Phase 2:define, analyze and validate various scenarios for different contract models and develop negotiation strategies
  • Phase 3:conduct a series of workshops and negotiations with suppliers to ensure that the new optimal contracts are realized.

Based on the analysis the public organization was able to purchase the components in the right amounts. When compared with the original assumptions, this meant that the organization was able to save several million DKK.

To find out more about this case and other industry solutions for public organizations, please contact Jens Holbek.

Jens Holbek

+45 23 22 62 35
jh@prokura.dk


3-phase

optimization of future contracts


Savings

of several million DKK

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