expense reduction analysts
DESCRIPTION
What we do.TRANSCRIPT
Working Together To Find Hidden Savings!
Working Together To Find Hidden Savings!
…without disruption
To Your Company’s services or budgets.
Cost Reduction Solutions from Industry Experts
Jim Massengale | Director Expense Reduction Analysts, Georgia
137 B Commerce Avenue
LaGrange, Georgia 30241
T 888-557-5057 ext 111
www.expensereduction.com
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About Expense Reduction Analysts
• World’s leading global consultancy focused on reducing G&A/non-core operating expense
• Network of more than 700 consultants worldwide (30+ countries), 250+ in the USA
• Proprietary benchmark data (ProcurionTM) from more than 14,000 cost-reduction projects
• Find average savings of 20% in G&A/non-core expenses (Process/Contract/Price)
• Contingency fee based outsource resource.
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About Expense Reduction Analysts
We bring clients our:1. Industry and purchasing knowledge in G&A
categories.
2. Current industry benchmark pricing from already completed projects in our Procurion database
3. Help with implementation of projects for optimized, sustained savings by monitoring results over 24 months
4. Time to work on strategic cost categories and/or the mission of the core business or service
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Just a few of our clients…
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Understanding Your Company:
• Company’s History
• Current Goals and Objectives – both market based and financial
• Measurements for Success – Sales, Margin, Profit
• Long term Goals
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Questions…
• What trend is Your Company seeing in their G&A/non-core expense categories?
• What monthly bill(s) does Your Company dislike paying the most in their G&A/non-core expense categories?
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Chemicals
Cleaning
Employment Services
Equipment Maintenance
Factory/MRO Consumables
Fleet Management
Food Services
Freight: FTL, LTL, Intn’l, Small Package
Information Technology: Hardware, Network, Software
Insurance: Business, Worker’s Compensation, Property & Casualty, Health
Janitorial Services
Laboratory and Medical Supplies
Leasing
Medical Supplies
Merchant Card Processing and Banking Fees
Office, Stationery, Printing Supplies
Packaging
Payroll Processing
Print Services
Records Management
Telecommunications: Data, Mobile, Voice
Temporary Labor
Travel
Uniforms, Linens andLaundry
Utilities
Waste Management
Many others . . .
Expense Categories to Consider
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The Process Yields Predictable Results
Our statistics* show:
• Savings in 90% of projects engaged
• An average cost savings of 20%
• Realized 101% of predicted savings
*Based on over 14,000 Worldwide ERA projects saving our clients $1.7 billion.
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ERA vs. Internal Projects
• ERA will Find Greater Initial Savings
• ERA will Monitor the Vendors for 24 Months
• This is NOT a One Time Event
• This is a 24 Month G&A Cost Cutting Relationship
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Column1Today
20% CostReduction
EquivalentIn Growth
Revenue $ 100 $ 100 $ 130 Direct operating costs $ 35 $ 35 $ 46 Labor costs $ 40 $ 40 $ 52 Non-core indirect costs $ 15 $ 12 $ 19 Net profit $ 10 $ 13 $ 13
Lowering Non-core Costs Can be VERY PROFITABLE…
A 20% cost reduction = 30% Net Profit Increase, orA 30% increase in revenue = 30% Net Profit Increase
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Where ERA Brings Value To Our Clients:
Our results are 100% measurable. Our clients can see where every penny was saved and where we brought value to the process of expense reduction.
ROI(Return on
Investment)
Time Invested
ERA
CLIENT
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Time requirements from Your Company team:
After the initial meeting, you will have already spent 20-25% of the time needed to implement a category project with ERA.
We do all the “heavy lifting”. Point us in the direction of your General Ledger and accounts payable invoices, and we will do the rest.
We would need a stakeholder meeting, baseline meeting and recommendation meeting over the next 3-4 months (total: 4-6 hours).
From project launch through implementation will take 90-180 days depending on the category. ERA does 95% of the work in the “background”.
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Working with ERA
Our Client Engagement Letter serves to:
• Explain how a contingency fee project works
• Helps define the parameters of a successful engagement
• Describes the terms andconditions of our relationship
