Imagine a real estate giant owning billions of dollars in property yet struggling with chaotic procurement. Outdated systems, unreliable data and siloed operations kept them from saving — until they made a bold move.
Finding the right partner with the expertise to navigate such complexity was the turning point.
This podcast, based on a case study, explores how GEP helped this organization centralize operations, achieve 98% PR accuracy and unlock 20% savings on addressable spend.
What You’ll Hear
- How strategic sourcing turned chaos into control
- The power of bundling agreements to maximize value
- How data-driven decisions transformed spend management
Ready to see how procurement can drive results? Tune in and transform your approach!
PODCAST SUMMARY
Challenges of a Disorganized Procurement System
The speakers discuss a case study involving a major real estate company managing billions of dollars in property. Despite its scale, the company faced significant procurement challenges: siloed operations, outdated systems, and unreliable data. Each department operated independently, leading to inefficiencies in purchasing everything from construction materials to landscaping services. The lack of centralized workflows and accurate information resulted in lost money and limited visibility into overall spending.
The speakers liken the situation to solving a puzzle with missing and mismatched pieces. Without a clear understanding of where money was going, the company struggled to implement cost-saving measures, leaving potential savings untapped.
A Strategic Overhaul: GEP’s Six-Step Process
To address these challenges, the company enlisted GEP, a procurement consultancy, to overhaul its processes. GEP’s experts analyzed spending patterns and introduced a six-step strategic sourcing process. This included competitive bidding, supplier consolidation, and renegotiating contracts to achieve better terms.
A major focus was placed on high-value areas like construction, property management, and essential services such as roofing and landscaping. One key strategy was bundling over 240 service agreements across various properties. This allowed the company to leverage economies of scale and negotiate more favorable deals. Additionally, the implementation of the GEP Smart system centralized procurement operations, digitized workflows, and provided real-time analytics for better decision-making.
The improvements weren’t just about cost savings. The company increased purchase order accuracy to 98%, significantly reducing errors and delays. Stakeholder compliance with the new "procure-to-pay" system reached 92%, ensuring organization-wide alignment with the updated processes.
Remarkable Results and Broader Implications
Within ten months, the company achieved remarkable results: a 20% reduction in spending, amounting to $2.7 million in savings. Beyond the financial impact, the overhaul enabled the company to shift from reactive problem-solving to proactive decision-making. Real-time dashboards and data-driven insights helped them stay ahead of issues and optimize resource allocation.
The speakers emphasize that these procurement principles are applicable to businesses of all sizes and industries — not just real estate giants. Strategic thinking, consolidating purchases, and leveraging technology to streamline operations can lead to significant savings and efficiency gains for any organization. The case study highlights how procurement can drive growth, innovation, and long-term success by freeing up resources for investment in new opportunities.
The discussion concludes with a reminder that smart procurement is not just about saving money; it’s a powerful strategy for unlocking hidden potential and creating ripple effects throughout a business.
