Case Study

Delivering Strategic Sourcing Savings for Senior Community Living

Tackling an aggressive sourcing challenge that focused on delivering net new cost savings for unique spend categories.

The Profile

One of the largest senior living communities throughout the US, housing nearly 100,000 beloved residents.

The Objective

In the wake of an acquisition, effectively doubling the size of Client’s profile, Velocity was hired to support the executive leadership in a companywide cost savings initiative. Velocity subject matter experts partnered with the Client sourcing teams to augment and lead specific waves of a strategic sourcing project.

The Challenge

The Client contacted Velocity seeking an efficient and cost-effective solution to a number of challenges. The existing sourcing staff did not possess the bandwidth to effectively meet the savings goal. In addition, new spend categories were identified with limited internal category expertise to already exhausted staff. These factors made prioritizing which categories were the best opportunities for savings without affecting resident care, a unique, yet slow decision-making process. With an aggressive target date for realized savings, there was a tremendous amount of pressure to execute efficiently.

The Impact

By deploying a team of seasoned category sourcing consultants, with distinct subject matter expertise, we were able to provide the Client with the needed knowledge-base and expertise to deliver savings. In addition to boosting man-power, Velocity was able to fill the subject matter gaps for the new spend categories, including the more complex and unique areas of spend. The collaborative teams completed 12 sourcing projects in four months, delivering a cost-effective solution to the pressing timeline. By supporting the internal team, we were able to meet and exceed the savings targets by the steering committee. The impact of the overall project resulted in an ROI in excess of 16X, far exceeding industry benchmarks.

“The exceptional sourcing expertise and high-degree of project efficiency made achieving our goals possible”
© Velocity Procurement