Chicago—Oct. 3, 2011—Prime Advantage, a buying consortium for midsized manufacturers, has introduced the Cost Benchmarking Service to its more than 700 manufacturing members. Cost Benchmarking is a complimentary service that provides significant savings opportunities for categories not currently provided by the group’s endorsed suppliers, and provides the ability to compare total cost of a product or manufactured good against costs incurred by other businesses in similar and different industries that use the same goods.
With the ability to compare pricing against benchmarks that are updated monthly, Prime Advantage members gain visibility to a broader pricing landscape, and can identify world class pricing and supply chain options which provide them a competitive advantage. Prime Advantage has partnered with Memphis-based Strategic Resource Management (SRM) to deliver the Cost Benchmarking Service to its members.
Cost Benchmarking leverages cross-industry market research, quantitative research and surveys to maintain and update its benchmarked database of suppliers.
“As a Prime Advantage member, we’re enjoying the savings programs with the group’s endorsed suppliers,” said Bob Reitsch, secretary/treasurer and co- owner of Rockford, Ill.-based Dasco Pro, a maker of forged hand tools. “We spend a good amount of money in categories not covered under the buying group and we jumped at the chance to benchmark how we’re doing against a cross-industry comparison. We figured it would either validate our current contracts, or potentially provide a nice savings opportunity.”
“Our Cost Benchmarking Service offers an excellent complement to our negotiated programs with our Endorsed Suppliers in the buying group, providing two approaches for procurement organizations to manage and drive down costs within their supply chain,” said Louise O’Sullivan, founder and CEO of Prime Advantage. “We launched the service to ensure, from a cost reduction perspective, that we’re addressing as many categories as possible for our Members.”
Prime Advantage has continually leveraged the collective volume of its membership to help drive costs out from within the supply chain, by negotiating savings programs with its endorsed suppliers. The addition of the Cost Benchmarking Service enables greater savings in more categories to members across virtually any manufacturing sector. Since 1997, Prime Advantage has paid more than $110 million in rebates and discounts to its mid-sized manufacturing members.
For more information, visit www.primeadvantage.com.