Service(s) Provided:
Cost and Vendor Management
Situation:
A school district in California with over 11,000 students and more than 1,100 teachers and staff experienced increased spend across multiple categories, including telecom, waste and software. The organization had limited internal capacity to investigate these large increases and no market data to compare their spend with similarly sized districts across the country.
Approach:
Vector’s Cost and Vendor Management Leader, Michael Salazar and his team reviewed vendor agreements and invoices for the district’s telecom, waste, and software vendors. He also completed an inventory assessment and various studies to determine usage patterns. This information was compiled into a comprehensive report identifying a strategy to reduce spend across several vendor categories. Once the plan was approved by the school district’s leadership team, Michael and his team commenced the implementation stage and began to execute the plan.
Results:
Telecom vendor fees were reduced by 82%, waste vendor fees were reduced by 10% and software vendor fees were reduced by over 40%. In total, over $376,000 in savings were returned to the district’s general fund. The school district leadership team were pleased with the results and were especially complimentary on the minimal amount of time invested by their staff – just a few hours to achieve these savings. The district has asked Michael and his team to expand their review to look at their supplies – facility, cleaning, and office.