Unlocking Spend Visibility: A Logistics Service Provider's Success with OMNIA Partners’ Spend Analysis Solution

Apr 1, 2024   |   OMNIA Partners

CJ Logistics, provides supply chain services for customers around the world, working to drive improvement and innovation. They offer multimodal logistics services that connect every part of the world via air, sea and land. CJ Logistics America is the billion-dollar logistics arm of the Korean headquartered company, CJ Group.  

CJ Logistics America’s Director of Procurement, Lowell Jett has been using group purchasing organizations for sixteen years over the course of his twenty year-long procurement career. While his use has taken place at several different organizations, when he came to CJ Logistics, he knew he wanted to implement the strategy in his role there as well. 

The Problem: Decentralized Purchasing Process

When Lowell started this position at CJ Logistics, there was no real procurement process or department for that matter, it was a very decentralized environment. Each of the sixty warehouses were “running their own show” and acting as their own procurement department buying whatever they needed. 

“The advantage that I got from partnering with a GPO was being able to get some much-needed support. When you're one man show starting a new department it’s hard to centralize the procurement processes of multiple warehouses.” 

Spend Visibility Savings

The Solution: Group Purchasing Organization Spend Analysis

When entering this role, Lowell shared that their visibility into spend data was limited and almost non-existent. He began working on a plan to get things in order, and that started with reaching out to OMNIA Partners Group Vice President, Private Sector West Robert Mietus, whom he had worked with in the past, to begin working on a spend analysis.  

"The OMNIA Partners team conducted a high level spend analysis and helped me by categorizing our spend at both the category and subcategory level. I reached out to the relevant suppliers and requested detailed data that Rob and the OMNIA Partners team used to perform a comprehensive analysis, enabling me to identify potential cost-saving opportunities and evaluate the contracts we were using." 

Once he had a new strategy and complete spend visibility, he went to his stakeholders and explained that he had uncovered a way to save them money; they just might have to change suppliers in some cases. By his 4th or 5th month at CJ Logistics, he had begun implementing new programs based on the data received from the OMNIA Partners spend analysis. 

“The spend analysis is going to help us highlight areas of non-optimal spend. Even if a supplier is contracted or affiliated with OMNIA Partners, uniform pricing may not apply across all categories. Therefore, it is imperative to ensure that the optimal mix is allocated appropriately.”

Value of Group Purchasing Organizations

Group purchasing organizations, like OMNIA Partners, are here to be your partner throughout the entire purchasing process. Unlike other GPOs, OMNIA Partners can begin working with you from the beginning of the analysis stage all the way through the end of the procurement process. 

Overall, this spend analysis has proven to be a transformative journey for CJ Logistics. Unveiling the intricate layers of their procurement data has empowered the company to make informed decisions, identify cost-saving opportunities, and begin to strategically align purchasing activities with organizational goals. The comprehensive insights gained through this analysis have not only enhanced operational efficiency but have also strengthened collaboration with supplier partners, fostering a more resilient and strategic approach to procurement.  

Benefits of a Spend Analysis

Interested in Learning More About Spend Visibility?

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