Client

 

European regional airlines provider

  • Flying 5 million+ passengers a year on over 100 routes
  • A fleet of over 70 aircraft

 

Approach

 

  • A long-term incumbent supplier tends to become comfortable when not carefully managed.
  • Lack of strategic contracts, regular market research, and benchmarking by the customer/client was leading to consistent price increases over time.
  • The above two points were addressed with urgency in this project.

 

Results

 

  • A price reduction of 29% was achieved by direct negotiation with the incumbent in the short-term
  • New material and technology was identified by market research.
  • A tendering activity was completed with leading suppliers in the market.
  • The most capable v competitive supplier was selected, and a 3+2 year contract was agreed with a Termination for Convenience clause in favour of the client.
  • A total of 45% combined cost and price reduction was achieved.
  • A lead-time reduction of 20% was achieved.

 

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