Case Studies » UNiTAB
UNiTAB has been a client of PMA Solutions since April 2001. Prior to the commencement of this partnership, UNiTAB employed an internal stores division responsible for procuring, storing and distributing all consumable items required by outlets throughout Queensland and the Northern Territory.
PMA has now assumed responsibility for this entire process. Additionally, PMA provides UNiTAB with a comprehensive package of reports and information regarding the program, allowing UNiTAB and PMA to jointly maximise its efficiency and cost effectiveness.
The key objectives UNiTAB set in outsourcing the management of its outlets’ consumables were cost management, rationalisation of inventory, freeing up UNiTAB resources and enabling smooth implementation.
PMA has met each of these key objectives and has continually exceeded UNiTAB’s expectations – the reason they are still clients today.
PMA’s detailed reports have provided UNiTAB a full breakdown of all costs associated with the consumables management program, allocated by cost centre. PMA’s guarantee to reduce the cost of UNiTAB’s recurrent print items by a fixed percentage was successful, with savings on every individual product.
But savings were not limited to those available through procurement. Through analysis of product and usage, the total number of product lines stored by PMA for UNiTAB reduced, from 407 to 264 in the first year alone. Similarly, the value of inventory held has been significantly reduced.
UNiTAB also saved considerable internal costs. Outsourcing freed up leased warehouse space previously utilised to store the consumables, whilst five staff were previously directly involved in the management of consumables were reduced to two.
A highly complex materials management and distribution system has been transformed from an internal to outsourced structure – and this has been achieved with no disturbance to the service provided to UNiTAB outlets.
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