Case Studies
Case Study #1
A multinational oil and gas company approached Progility with a quote from a local vendor. The company did not have trading terms with the vendor and requested that Progility transact on their behalf.
The industry standard response is to place a fixed margin (often called a pass-through margin) on the quote and conduct the transaction.
As part of its value-add service, Progility discovered that the same items could be purchased from a location closer to the factory where the goods were made.
The result:
– 35% cost saving to the client
Case Study #2
A company with no prior history with Progility had an urgent requirement for high pressure autoclave fittings for its offshore processing facility. While the goods were not high value, the potential downtime associated with not having the goods on hand meant their value in the operation was potentially a 7-figure sum.
With no existing suppliers able to locate the requirement, following a recommendation from an existing Progility customer, the company approached us after hours to see if the goods could be sourced.
Being a 24-hour global operation, combined with first-hand experience working offshore and an understanding of the importance of critical path, Progility was able to utilise global industry contacts to source the required goods from inventory held in multiple locations. Utilising our established freight network together with preclearance with customs in Australia, the goods were successfully delivered to the client’s remote location.
The result:
– 8.5 hrs from initial enquiry to quote
– 4 days from purchase order to delivery including customs clearance
Case Study #3
A manufacturing company contacted Progility to purchase some heavy industrial equipment from a non-approved vendor who had already provided pricing. Progility contacted the equipment manufacturer and by utilising established negotiation strategies and techniques, an agreement was reached including discounted price, payment terms, and delivery options.
The result:
– 0% increase in cost by engaging Progility to conduct the transaction as a direct result of the discount achieved.
– Transactional risk transferred from the customer to Progility with the equipment delivered Free in Store (FIS) rather than Ex-works (EXW).
Case Study #4
A power generation company had located a heat exchanger in Australia at a price of approx $180k with a 12-week lead-time. The supplier was not an approved vendor, therefore the purchase was to be conducted as a “pass-through” transaction which would normally attract a minimal fee.
On investigation, it was identified that the heat exchanger was being manufactured internationally and the transaction was completed by purchasing directly from the manufacturer.
The result:
– 75% cost saving
– 50% reduction in lead-time
Case Study #5
Progility was approached by a large ASX listed mining company to manage a sub-set of vendors who each had an annual spend of less than $10k in order to reduce the administrative burden of managing their non-critical approved vendor list.
Progility approached the vendors and was able to negotiate a satisfactory outcome.
The result:
– A significant reduction in the approved vendor list
– Increased Purchase Order automation by approximately 30%
– Single focal point for multiple purchases across a variety of categories increasing internal governance.
Case Study #6
Progility was asked to quote for a large requirement of explosion proof batteries for use in the maritime industry.
Progility approached different distributors and the OEM’s agents in 7 countries across 4 continents. After considering all associated costs, Progility identified that the most economical source of supply was a local distributor in the Perth metro area.
Progility established that the distributor was already an approved vendor of the customer and recommended the customer purchase directly from the distributor.
The result:
– Pricing assurance
– Affirmation of Progility’s quoting transparency