Strategic Sourcing

Challenge 

In the last decade, the market landscape in which the Royal Auto Club of Western Australia (RAC) operates has changed significantly. 

RAC is now facing substantial competition in roadside and insurance markets from diversified and specialist companies boasting economies of scale and niche expertise. To remain relevant and address their members’ unmet needs in this dynamic market the RAC has embarked on a journey to recognise and reward member loyalty and spend whilst expanding their product and service portfolio.  

For RAC the Member Recognition Program (MRP) presented a means of unifying the membership experience with RAC products and services using world class technology that would seamlessly integrate into their existing systems and processes. 

Solution

Cost Down Revenue Up ‘CDRU’ was selected as the strategic sourcing partner to support the MRP initiative. The CDRU people, sourcing process and technology analysis tools have been collectively brought together to implement a strategic sourcing assignment 

The CDRU process known as the USP (Understanding, Solutioning, Proposing) process mapped out very clearly, and in practical steps what had to be done in the constrained time-frame to enable RAC to achieve their vision for MRP to drive an improved member experience and to secure their market leadership in Western Australia into the future.

Results

CDRU completed a detailed review of RACs business needs against the technology and platform options that would successfully integrate into RAC. This was used as an input into developing a commercial sourcing approach using the CDRU USP process to calculate indicative supplier costs, resourcing and scheduling to support the RAC MRP business case to proceed. 

The benefits to RAC included: 

  • Quick turnaround and considered independent recommendation with a call to action 
  • Market assessment of supplier capability to successfully deliver to MRP requirements in Western Australia 
  • Reduced indicative costs and solution complexity risk from the original business case.