Negotiating cost savings and accelerating procurement 

Overview

At our client’s refinery, the effluent treatment plant was nearing full capacity. Overflow would have catastrophic environmental consequences. The company urgently needed to acquire 17 large tanks for temporary slurry storage. 

Our client engaged GCM to manage the procurement process. Despite high-pressure time constraints, GCM not only secured and expedited the delivery of the tanks in just two working days but also negotiated significant cost savings of a forecasted £58,000. 

 


 

The client

Our client is a refining and energy trading company responsible for operating a prominent UK refinery.  

 


 

The challenge

The effluent treatment plant at our client’s facility had reached near-capacity. If overflow happened, the resulting environmental damage would be severe. The only viable option was the immediate procurement of 17 rental baker tanks to store excess slurry. 

As there were no existing rental agreements in place, a procurement solution had to be executed quickly – with no room for delay. Urgent time constraints meant our client was in a weakened negotiating position. However, with extensive experience in procurement, we knew we could deliver the best commercial outcome. 

 


 

Our approach

GCM led a fast-tracked procurement process. First, we approached the only known qualified UK vendor for an initial six-week rental of the 17 tanks. We were quoted £127/day per tank – a price that we confirmed aligned with a previous comparable rental agreement we were aware of. We leveraged our existing relationship with the supplier to negotiate the daily rate down to £102 per tank – a 20% reduction.  

Next, we coordinated with the supplier to ensure the tanks were delivered and on-site within two working days.  

 


 

The result

GCM’s quick action not only averted a major operational and environmental crisis, but also delivered financial value, including: 

  • £17,850 in immediate savings at point of order 
  • £44,625 in realised savings by week 15 of hire 
  • £58,063 forecast total saving at a £290,318 total forecast cost (vs. £348,381.60 without negotiation) 

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