This category is a ‘snake pit’ of supplier behaviors. It’s one of the worst categories for sharp practice that we have seen.
Many contracts have terms that:
- Inhibit competition from getting a foothold
- Renew automatically
- Call for guaranteed increases
- Do not itemize costs for a majority of offered services and materials.
In addition to these challenging terms, invoices are often found to be incorrect – almost always to the advantage of the seller. Buyers are often local staff managers unequipped to negotiate this category. Buyers often can’t find their contracts, or have forgotten the terms.
Mid-sized multi-plant customers have difficulty consolidating because they are not recognized as part of a national account and are under separate contracts that don’t terminate concurrently.
Suppliers in this category typically provide:
- Specialty and Safety apparel
- Facility and Cleaning Supplies
- Restroom supplies
- Mats and rugs
- Location contracts do not terminate concurrently
ThePurchasingDept Can Help
Our contract has saved members between 22-45% over their existing contracts in this area. Our contract offers many benefits, including:
- Heavily Discounted National Large Group Contract Pricing (36 month/60 month)
- Limited auto renewal terms
- Limits on price increases
- Waived increases on first 3 years of 5yr contract
- National Accounts “locked” invoice pricing.
- Multiple locations may be added as current agreements expire.