In the highly competitive car rental sector, maintaining operational efficiency is crucial for staying ahead. This case study delves into how Revive Supplies collaborated with a Fortune 500 car rental giant with nearly 3,000 locations across the United States to tackle escalating costs in their floor cleaning regimen.
The Challenge: A Sudden Cost Surge
For almost ten years, our client had successfully relied on a floor cleaner packet with zero reported issues. However, the year 2023 brought an unexpected challenge – a substantial increase in both freight and product costs associated with their long-standing floor cleaning solution. With an extensive network of nearly 3,000 locations, the company found itself facing a significant financial dilemma.
The Existing Scenario: Escalating Costs and Operational Strain
The company's procurement strategy involved purchasing 20,000 cases annually from a competitor at $19.63 per case. Each case yielded 288 gallons of cleaner, resulting in an annual consumption of 5,760,000 gallons. The associated product cost was $392,600, with an additional $58,890 attributed to freight costs. In total, the company was grappling with an annual expenditure of approximately $451,490.
Engaging Revive Supplies: A Cost-Effective Alternative
Concerned about the rising costs, the company proactively reached out to Revive Supplies for a viable solution. The goal was clear – find an alternative product that was not only effective but also more cost-efficient. In response, Revive Supplies introduced their "Neutral Cleaner in Water Soluble Packets," priced at $24.30 per case.
The Revive Supplies Solution: A Win-Win for Cost and Efficiency
The introduction of the “Neutral Cleaner in Water Soluble Packets” marked a turning point. With a yield of 720 gallons per case, this innovative solution promised not only cost savings but also enhanced operational efficiency. The company, now procuring 7,834 cases annually to yield the same 5,760,000 gallons, witnessed a significant reduction in both product and freight costs. The associated product cost dropped to $190,366.20, with an additional $24,747.60 attributed to freight costs. In total, the company's annual expenditure was now $215,113.80.
Key Outcomes: Cost Savings and Operational Streamlining
Cost Savings: The transition to the Neutral Cleaner in Water Soluble Packets resulted in substantial cost savings. The annual spend dropped from $451,490.00 to $215,113.80, providing the company with a considerable financial advantage.
Operational Efficiency: Fewer cases purchased not only lowered product costs but also streamlined logistics, contributing to the company's sustainability goals by reducing the environmental impact associated with long-haul truck deliveries.
Conclusion: A Strategic Partnership for a More Efficient Future
Revive Supplies, through its innovative solution, not only addressed the immediate cost challenges faced by our client but also contributed to operational efficiency and sustainability goals. This case exemplifies our commitment to providing tailored, cost-effective alternatives that align with the unique needs of our partners in the car rental sector.
To explore how Revive Supplies can optimize your organization's operational costs and sustainability goals, visit www.revivesupplies.com. Our mission is to empower your business for a more efficient and cost-effective future.