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Success Story - "Packaging Materials and

Company Description
Privately held market leading manufacturer of medical, dental and animal health equipment.
Company Situation
and Problem

– Multimillion dollar corrugated and packaging supplies spend with 13 incumbents
– Approximately 500 items with sub-categories (corrugated, foam, misc. supplies
     and poly bags)
– Multiple plants involved – Long term supplier relationships in tight-knit community
    offering extra value services

Paladin Actions & Recommendations – Internal stakeholder engagement to identify non-price requirements and KPIs
– Supplier survey to gather data on non-price criteria
– CombineNet’s advanced optimization solution enabling flexible bidding & various
    scenario analysis
– 33 potential suppliers invited to bid; 15 participated
– Pre-bid meetings with the incumbent suppliers and new bidders; supplier
    technology training
– Bid evaluation and scenario analysis including alternate bids and product
– Preliminary recommendation and further scenario analysis with customer
– Short-list supplier visits
– Business awards
Client Results – 28% savings while protecting incumbents, where appropriate
– Reduced supply base to 7 suppliers
– Implemented indexed pricing for corrugated
– Maintained service levels
Advanced sourcing optimization enabled a more efficient and effective sourcing process: more bidders, alternate bids, conditional offers, and bundled bids. It also facilitated the involvement of internal stakeholders which garnered support for the final award: 28% savings while reducing the supply base and maintaining stringent service requirements.


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