Spartan Stores has been an Intesource Partner since November 2010. In that time period they have enjoyed a gross savings of $6.2 Million based off of over 177 awarded events. Much of their success can be attributed to the acceptance of the e-sourcing process across the entire Company. Over 13 departments have utilized the Intesource tool! These events have been as diverse as Vision Insurance to Private Brand Popcorn. Below you will find just one of their department’s experience.
In His Own Words
Craig Green, Procurement Manager, Meat/Seafood Division
When I was first approached about running a reverse auction I was a bit hesitant about it. When Bryan [Bryan Porritt, Project Manager, Strategic Sourcing, Spartan Stores] came out to help me set everything up for the first time it took nearly 2 hours. I remember telling him, ‘I don’t see how this will work if it is going to take this long to set up an event.’ He assured me it wouldn’t. So we ran our first event and it was a complete dud. I must admit I was a bit discouraged.
A few weeks went by, and I wanted to try it again. This time it only took about 10 minutes to set up and we saved nearly $11,000. As the weeks progressed, I continued to try different events ranging from ground beef to lobster tails. On the ground beef events we have saved anywhere from 10K to 43K. The best part about it is being able to get a better cost of goods from our incumbents from what they had previously quoted us. And it still amazes me to see the leader of an event continue to bid the price down to try to hit our reserve.
Also because of this program we were able to run shrimp and at very aggressive retail at the holiday time. We have also been able to find replacement products at a much better cost of goods that which we are now selling better than anticipated.
Though not every event is successful, it has changed the way we look at spot buys and I know we will continue to save on cost of goods, as well as time, through this program.
Department Snapshot
Events Run: 23
Total Volume: $6MM
Savings To Date: $382,000
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