Cost Reduction Opportunity Assessments
Based on our diagnosis, we drill down and translate areas for improvements into quantifiable opportunities. We review your agreements, benchmark your pricing and identify priorities (sourcing categories, purchasing process improvement, spend leveraging, distribution and logistics, compliance control, and specifications requirements). Cost reduction impacts are assessed and evaluated based on realistic and achievable objectives, and then converted into dollar savings.
Our goal is to present you with a true picture of the savings you can achieve while maintaining quality and service for the end users of the products purchased. Each supplier contract is thoroughly analyzed and benchmarked against industry standards. If we determine that your price or terms can be improved we quantify the potential impact based on your purchased volume. If we determine that other relevant terms can be improved, we will also account for any changes we think we can achieve.
We focus on the highest spend categories as well as on the top suppliers in each category. Our goal is to cover at least 80% of your spend through our analysis which is typically done with less than 20% of your suppliers. We and/or your team can deal with the remainder of your products/services/suppliers based on our recommendations. We work to create for you the greatest value possible in the shortest timeframe.