Under the aggregated spending program, MarketMile plans initially to offer a leveraged buying program, a benefit to American Express corporate purchasing card clients. American Express will use its buying power with its own suppliers to offer mid-sized companies aggressive discounts that may not otherwise be available to mid-tier companies on their own.
MarketMile says this program currently includes suppliers representing more than 20 indirect goods and services categories, such as audio conferencing, fax machines and printing. Customers of MarketMile will be able to use the leveraged buying program at no additional cost and with no minimum spending commitments. MarketMile claims the program delivers 25 percent average savings, depending on commodity category and prior supplier rates.
MarketMile says its e-procurement portal already provides mid-tier companies with "soft" process cost savings by streamlining purchasing. But the new aggregated spending program answers demands from these companies for procurement solutions that deliver hard-dollar cost savings, MarketMile said in a statement.
American Express survey data support the solution provider's assertion. Late last year, the credit card firm conducted e-procurement trends research among 500 purchasing decision-makers at mid-sized companies. This study found that mid-sized companies select suppliers based on price (70 percent), then quality (40 percent).
Today's economic climate requires that companies find ways to reduce costs to improve the bottom line, said Gayle Sheppard, CEO and president of MarketMile. MarketMile's focus on helping companies control and improve indirect expense management is reflected in our integration of American Express's leveraged buying program. It's another step towards achieving our overall service vision.