District collaboration yields “economies of scale” savings

Clearly, maintenance isn’t the only area in which ITD employees think up and implement improved ways of doing business. Purchasing sections in Districts 6, 5 and 4 also have collaborated to save money.

Denise Cooley, senior buyer in District 6, teamed with Lora Longhurst and Lori Royal, who buy supplies in District 4 (Shoshone) and District 5 (Pocatello), and proposed that they jointly purchase supplies.

“Since our districts are close together in the same region, it made sense to buy products together,” Cooley said. “Joining forces could enable us to achieve economies of scale.”

The three districts quickly realized a 3-percent savings on pothole patch and 1.5- percent savings on crack seal. The buyers now communicate regularly to determine commodities and services needed and which buyer will prepare and manage solicitations.

Rather than three district buyers advertising for bids on the same items at the same time, one district now does it for all three districts, eliminating wasteful duplication.


Published 09-02-16