Kramer Procurement Solutions/Case Studies

CASE STUDIES

Ahold USA -- Procurement Overhaul – $100 million savings over during 1999 and 2000, almost 3,000 employees trained in negotiations, procurement, ethics, and antitrust compliance.

Kramer Procurement Solutions' founder, David Kramer, originally created and implemented the Seven-Step Procurement Process for his then employer Ahold USA. Its success was so profound that his Process was implemented internationally. Kramer led a team of twelve professionals to facilitate thousands of transactions from 1999 to 2002 for Ahold Global Sourcing, Ahold Information Systems, Ahold USA, American Sales Corporation, BI-LO, Giant Food Inc. (Landover), Giant Food Stores, LLC (Carlisle), Peapod, Royal Ahold, Stop & Shop, and Tops Markets. Savings were generated in the areas of grocery, perishables, general merchandise, health and beauty care, Rx, indirect goods and services such as technology, office supplies, construction material, and HR services. See Testimonials.

The following are examples of successful strategic sourcing initiatives:

• Supply Agreement for In-Store Scales – Savings of $3.2 million.

• Salmon Supply Agreement – Savings of $2.7 million.

• Pharmacy Data License Agreement -- Converted individual company licenses into an enterprise-wide license agreement resulting in savings of $2.25 million.

• Purchase of Self-Scanning Units – Savings of $2.6 million and an additional 10% savings on parts and accessories.

• Purchase of In-store Wireless Communications System – Savings of 36% off budget totaling savings of $2.1 million.

• Full-Service Wholesale Agreement – Savings of over $25 million measured against incumbent supplier’s best offer.

• Computer-Based Training License and Development Agreement – Savings of over $2 million and enabled supplier to obtain credit approval to fulfill its financing requirements.

• eBusiness Consulting Agreement – Developed client’s eBusiness strategy resulting in non-competition agreement from consultant in client’s industry for 12 months and exclusive ownership of all resulting intellectual property.

• Major Software Company License Agreement – Savings of $3.58 million from renegotiated license agreement and cap on maintenance increases.

• Sale of Dairy Facility and Multi-year Supply Agreement – Advised and negotiated the sale of a client’s dairy operations and developed a long-term supply agreement. Negotiated a without cause right to terminate resulting in a $8.5 million tax benefit.

Mason Contractors Association of Massachusetts (MCAM) – Union Negotiations and Procurement Overhaul. See Testimonials.

• Advised the MCAM in their union negotiations. Successfully collaborated with the local unions to reach win-win agreements for the mason contractors by focusing on preservation of the industry.

• Developed procurement best practices for mason contractors, including joint buying opportunities and trained each of their buyers in advance negotiations skills.