Our initial contact with your company usually comes from the referral of one of our current client or partner, typically at the CEO, COO or CFO level.
We then organize a conference call or meeting to discuss your Supply Management consulting needs and how we can contribute to improve your competitiveness in your marketplace. At the same time, we will ask you questions about your company’s business model, your challenges and your goals. We will present our services, references and results we have achieved for other clients.
If you believe we can help, we will enter into a formal business relation via a Non-Disclosure Agreement (NDA) and perform –free of charge- an “OPTIMBUY First impression diagnosis” – data review within a week to 10 days. The purpose is to quickly assess the potential of our services for your organization and to provide you with objective feedback so that you can decide on next steps. We will analyze readily available information on your supply chain management and we will do this in total confidentiality.
If we think that your organization is close to achieving maximum return on its supply chain management, we will give you some kudos and additional suggestions – free of charge.
On the other hand, if we assess your organization can improve from our consulting, we will discuss with you a consulting agreement and a timeframe to bring you additional value and savings while maintaining quality and service. Our agreement will include our 6 step approach: Diagnosis, Assessment, Negotiation, Tracking, Systems & Strategies further described in “ Our Services ”.
We only sign contingency agreements with no upfront fees, hidden charges or retainers for our core services. Because we have been so successful at finding and implementing cost reductions and savings for our clients, we only request a contractual percentage of effective actual cost reductions and savings to compensate for our time and recoup our costs and expenses. Best of all, we only get paid when you realize these cost reductions and savings, so there is only positive cash flow impact for your company.
Based on previous assignments, you can expect the cost to benefit ratio, over the span of the suppliers’ renegotiated agreements, to be in the 1 to 10 to 1 to 15 range.
Depending on the size and complexity of your organization, our services will extend over a 2 to 4 month period, from start of mission to start of savings. We are happy to discuss an accelerated schedule if appropriate.
Based on our “OPTIMBUY First Impression Diagnosis”, we will provide you with an estimated range of potential cost reductions and savings which we will confirm with precise accuracy in the phase 2 of our 6 step approach.
Hard dollar savings are the savings generated by the negotiation of suppliers’ terms and typically would include price reductions, cost increase avoidance, volume rebates, growth incentives, cash discounts and other directly measurable terms.
Soft dollar savings are additional savings generated by changes in processes and terms. Examples would be: reduction of the number of invoices generated by suppliers, moving from a 15 day payment term to a 30 day end of month term, end-users’ time by simplifying ordering guide, etc.
OPTIMBUY only gets compensated on measurable hard dollar savings.
This is a simple and straight forward process. We will send you an invoice, based on our agreed-upon terms, with a detailed back-up for each supplier. As part of our service package, the “Savings and tracking process implementation” is aimed at providing you systems and tools to track your purchasing agreements. The data used to produce our invoice comes from the same systems.
In addition to OPTIMBUY permanent staff, we have secured the assistance of independent partners, these partners are associates who have worked with us in the past as well as a network of specialists such as attorneys, financial analysts and experts we can tap to resolve difficult challenges. We also rely on our Clients’ team of internal experts.
Actually it does not. We do most of the work, so that your purchasing team can continue to support internal customers and manage day-to-day relations with suppliers.
Based on client’s needs, goals and expectations, OPTIMBUY will totally integrate sustainability in the suppliers’ requirements based on the input and teaming with client’s purchasing, marketing, communication and operations. At OPTIMBUY, sustainability is not just an item on our checklist, it is part of our DNA and our search for cost effective upstream solutions.
Yes, we offer training modules as a standalone offer. Please refer to “Additional Services.” We will review with you and your HR representative the needs, the goals and the delivery methods. We establish a training framework and conduct customized training sessions to improve skills and competencies of current staff.
During a mission we always involve the Company’s purchasing organization in our change process, get their buy-in and transfer our know-how and expertise. It’s like a hands-on training session where examples are real analysis, real negotiations, real KPIs monitoring.
Absolutely not, we can help you with the due diligence and the quantification of the synergies to be generated by the merger. This should help you convince your Board or your Investors that this acquisition makes sense. Post-merger, we can assist in implementing cost reductions and savings, as well as tracking them.
It depends. Sometimes a client brings us in to resolve a particular situation and once we’ve reached a solution and provided results, the relationship ends. Other clients prefer to work with us on an on-going basis under a multiyear contract and view us as a team resource, partnering with them to plan for and maneuver through organic growth, acquisitions and transitions. These relationships may last many years. We meet with the CEO/COO as often as needed, sometimes up to four times a year, over a period of several years and work with and for the benefit of the entire company team.
However, we have, so far, never encountered a competitor offering our unique blend of level of expertise, risk free initial diagnosis, client’s controlled process and results based compensation.
GPOs will typically retain a large portion of the annual savings generated by leveraging the purchasing power of the businesses they represent. Depending on your Company specifics, it could be very beneficial to either totally exit the GPO or some of the categories you buy through the GPO to set-up your own programs.
Now when it makes sense, we may advice a Client to join a GPO and help decide which GPO to belong to.
Give us a call to discuss at 301 740 2441 or request additional information at info@OPTIMBUY.com.
It depends. Our goal is to improve your competitiveness in your marketplace and optimize your supply chain management.
Depending on 1/ the maturity of your organization, 2/ the tools, processes and systems you have implemented (and as importantly your organization’s compliance), and 3/ the strategies you initiated, we will increase your Purchasing productivity.
You would be amazed to find out that some of your largest competitors have serious challenges with this key function.
Resistance to Change is the biggest internal issue we face. “We’ve always done it this way, why should we change?” The solution comes from the buy-in and commitment from top management who are willing to cascade down accountabilities. We always involve the Company’s purchasing organization in our change process, get their buy-in and transfer our know-how and expertise. It’s like a hands-on training session where examples are real analysis, real negotiations, real KPIs monitoring.
As far as external issues, suppliers are often prepared to offer better contractual terms, but they will ask for some commitment on volume or a timeframe for delivering compliance. Theses might challenge internal customers and will need appropriate communication and leadership to resolve.
OPTIMBUY has satisfied clients in many industries. See “ Our Industries”.
We excel in the implementation of our concrete action plans and in the negotiations with suppliers in all industries where we perform our 6 step approach: Diagnosis, Assessment, Negotiation, Tracking, Systems & Strategies further described in “Our Services”.
Please refer to “Our Services – Diagnosis” for the answer.
Based on our diagnosis, we meet with our client to clearly define the goals and expectations from our process. We then make assumptions and hypothesis on the various quantifiable elements of the supply chain. Our assessment is always realistic and achievable, as we strive to deliver on our promises and exceed our client’s expectations.
OPTIMBUY has established long term relationships in many industries. We work in a thorough and respectful manner to find solutions for our clients. We are tough but fair in presenting our client’s case, and we are ethical and honest in reaching agreements with suppliers. We have, over the years, developed credibility, thanks to our ability to deliver on commitments. If a situation requests a change of supplier, OPTIMBUY will seek client’s approval prior to change and ensure a smooth transition.
Based on our client practices, goals and objectives, we will strive to enhance participation of Tier 1 and Tier 2 diverse suppliers which include: Minority or Women owned businesses, Nish and Nib suppliers, Disabled Veteran businesses as well as Small Businesses. At OPTIMBUY, supplier diversity is not just an item on our checklist; it is part of our DNA. We have, on our Team, a supplier diversity expert who can further assist you in the definition, implementation and management of a comprehensive supplier diversity program.
Suppliers are usually open to discuss and re-negotiate even recently signed agreements. Because they care about their customers, suppliers typically have a “satisfaction guarantee” clause.
OPTIMBUY expertise is recognized in Europe, Asia and Central & South America. Several global clients have asked OPTIMBUY to manage cost reductions processes in their key subsidiaries oversea. OPTIMBUY multilingual professionals apply their methodology and negotiations’ techniques in a similar fashion to the utmost satisfaction of our clients.