Client Overview
In 2025, a dynamic industrial coatings and corrosion control business based in Perth began implementing Avenida Australia’s exclusive ‘Pay as You Save’ procurement model. Like many companies in the construction and industrial sectors, this client was grappling with escalating costs across essential materials and specialised equipment. Faced with tightening margins and growing pressure to maintain performance standards, they turned to Avenida for a smarter, more strategic solution.
Through this collaborative approach, the client is projected to save an impressive $1.2 million—an outcome made possible through targeted vendor negotiations, alternative supplier sourcing, and the flexible, cash-flow-aligned structure of Avenida’s unique model. More than just a cost-saving exercise, this initiative is actively transforming how the business operates—unlocking new levels of efficiency and profitability.
The Challenge
The company had been navigating increasing costs across key operational categories including protective coatings, blasting abrasives, industrial consumables and specialised equipment. Despite long-standing relationships with multiple suppliers, these vendor agreements offered little room for flexibility on price or terms. The fragmented supplier base also meant inconsistent service levels and delivery timelines, contributing to inefficiencies and project risks.
The business was clear in its objectives:
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Reduce procurement costs without compromising on product quality or operational output
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Streamline and consolidate supplier relationships to unlock better pricing, delivery reliability and service consistency
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Ensure supply chain continuity to support current workloads and scale with future projects
They didn’t just want to spend less—they needed a system that supported sustainable growth, improved financial resilience and strengthened their position in the market.
The Avenida Solution: The ‘Pay as You Save’ Model
Avenida Australia introduced its innovative ‘Pay as You Save’ model—a results-focused procurement strategy tailored to meet the real-world financial and operational pressures faced by industrial businesses.
Rather than approaching procurement as a transactional exercise, Avenida developed a holistic strategy centred around three powerful pillars:
1. Vendor Agreement Negotiation
Using its deep industry experience and vast network, Avenida began renegotiating the client’s existing supplier contracts. The goal was to secure bulk-buying advantages, access direct-from-manufacturer pricing and improve payment terms. These negotiations also opened the door to building longer-term, more strategic vendor partnerships—focused not only on cost, but on reliability, responsiveness and mutual growth.
2. Alternative Supplier Sourcing
Avenida conducted a thorough market review, identifying high-quality alternative suppliers for coatings, abrasives and consumables. The focus was not just on cost reduction, but on product performance, delivery consistency and alignment with the client’s project needs. This competitive sourcing effort revealed significant savings opportunities—some materials were found at up to 20% lower cost, without compromising on quality or compliance.
3. Flexible Payment Structures
What makes Avenida’s approach truly transformative is the way it aligns savings with cash flow. The ‘Pay as You Save’ model structures procurement payments in a way that reflects the client’s revenue cycles. This means they can access savings immediately without needing large upfront capital outlays. The result is improved cash flow, stronger working capital management and greater capacity to invest in other areas of the business.
Projected and Realised Impact
The projected savings across the full contract period are estimated at $1.2 million—money that can now be reinvested into growth and innovation. But the benefits extend far beyond the balance sheet.
Cost Reductions:
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Coating costs reduced through direct manufacturer agreements
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20% savings achieved on blasting abrasives through new supplier arrangements
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Equipment and consumables procurement optimised via streamlined supplier engagement
Cash Flow Improvement:
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Payment terms aligned with project cash inflows
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Reduced financial pressure enhances flexibility and reduces debt reliance
Operational Efficiency:
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A consolidated, reliable supply chain supports uninterrupted project delivery
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Better visibility into procurement costs improves budgeting and forecasting
A Ongoing Ripple Effect
With the initial phase already showing powerful results, the client has begun reinvesting the saved capital into operational upgrades—including new equipment and expanded service capabilities. Their team reports enhanced confidence in project delivery timelines, stronger competitiveness in tenders and improved stakeholder satisfaction.
This strategic shift is helping the business scale more sustainably, with procurement now acting as a driver of success rather than a source of stress.
Client Testimonial
“Avenida Australia’s approach is already transforming how we manage procurement. The ‘Pay as You Save’ model is giving us immediate cost benefits while improving our cash flow position. Their expertise in supplier negotiations and alternative sourcing is setting us up for long-term success.”
Conclusion
Avenida Australia’s ‘Pay as You Save’ model is more than a cost-saving solution—it’s a game-changing approach to procurement that empowers businesses to thrive under pressure. By combining real-world industry knowledge, strategic supplier relationships and flexible financial structures, Avenida is helping Australian companies unlock meaningful savings while preparing for long-term success.
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