Creating and ensuring cost reductions
Project finish date: Ongoing
Location: Australia wide
SignManager’s web-based management system allow our Property Teams to log on to a job at any time, and view job progress and contractor pricing. This transparent business works well for us and has enabled us to form a trustworthy business relationship which has provided a number of benefits over our previous procurement model.
Matthew Franich - Property Director
ALDI’s sign management had historically been based on a contract arrangement with two approved suppliers, re-tendered every 2 years. When one of these contractors went into administration, ALDI was left with a major sign management headache.
Stock had been frozen by the administrators and several jobs were delayed as the remaining contractor struggled to manage the additional capacity.
The previous contractor had a fixed price contract on a selection of standard items, but this did not cover non-standard signage or some aspects of freight and travel.
To help resolve the issue, ALDI asked SignManager for assistance. First up, a detailed sign manual was developed that provided a contractors with detailed specifications to tender for the work.
By tendering every job to at least three contractors in each state, we were able to deliver significant cost savings. Compared to their previous contractor’s benchmark pricing, costs were cut by 13% after the first year, including all our management fees.