Significant reduction in the number of suppliers!
One year ago, Category Manager Preben Nielsen from Oticon - who knew Mogens Daarbak A / S from earlier on - contacted Mogens Daarbak A / S, because Oticon was in the process of optimizing the purchase of office supplies among other things.
Today, Oticon is fully engaged in converting goods and products from other suppliers to Mogens Daarbak A / S. The first step is office supplies and special order goods. During the first quarter of 2011 we will also take hold of packaging, and an agreement on the planting service is also in the pipeline. Oticon estimates that they will achieve a better solution for less money by switching to the proposed planting agreement with Mogens Daarbak A / S. As many product areas and departments will be involved, we expect the process of implementing the concept to take a few years. But the goal is clear: The number of suppliers will be reduced by 10-15.
Our evaluation is that Oticon can achieve cost savings in the region of DKK 15.000-20.000 per year - by collecting purchases of office supplies, packaging and special order goods by Mogens Daarbak A / S. We also expect significant savings on freight since efforts are made to receive deliveries only once a week - and eventually only once every 14 days. One of several milestones is reached. We can already see a time saving factor in our cooperation, and an additional benefit is that we now obtain a comprehensive overview of the purchase size of these products for future benchmarking.
Why Mogens Daarbak A/S?
"The main advantage of Mogens Daarbak A / S is their concept - there is nobody covering as broad as they do. At the same time they manage to perform the task at competitive prices and with a good attitude to the cooperation. "
Preben Nielsen - Category Manager, Oticon