Manufacturer structures hidden savings of $544,000 in chemicals

Unable to purchase from major suppliers

The client has several specialty chemicals manufacturing plants located in the South, Midwest and Northwest.

Before working with Expense Reduction Analysts (ERA), the company was unable to purchase chemicals from some of the major suppliers. Not only did this prevent the client from obtaining attractive pricing on commodity chemicals, but the lack of access also affected the company’s ability to negotiate competitive prices with smaller providers.  

Industry expertise and proprietary RFP tools  

Using their expertise in the chemicals industry and proprietary tools that are part of ERA’s RFP process, Consultants negotiated new contracts with a major supplier and obtained better pricing from some of the client’s smaller incumbent providers.  

Based on the successful results, the client continues to rely on ERA to investigate options such as alternative products and to negotiate on its behalf as the need for new formulations or replacement chemicals arises. 

The client used the more than half-million dollars in savings to buy new trucks and equipment and install new storage tanks to take advantage of price dips ─ which is likely to lead to additional savings.

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