procurement cost reduction client cost assessment
TRANSCRIPT
Procurement Cost Reduction
Client Cost Assessment
Who we are:
We are one of the nation’s premier cost reduction firms
Our cost reduction methodology has reduced costs 100% of the time where it has been engaged
Who we are:
Founded by Ted Landgraf, one of our country’s most knowledgeable procurement cost reduction experts Authored procurement guidelines, policies, and procedures, and led a
national team for the U.S. Department of Labor (DOL) National Office of Job Corps
Provided oversight over several billion dollars in procurement
Personally trained 100+ Project Managers, Contract Officers, Regional Directors, and other Government Staff for five DOL Job Corps regions
Produced documented average $534,000 in reduced costs annually for each procurement bid
Who we have helped:
Our methodologies have helped the Federal Government, Fortune 500 firms, hundreds of smaller companies, and non-profits save billions of dollars on their products and services purchases
Clients which have benefited from our cost reduction methodology include small to midsize companies, plus State Farm Insurance, Novell, Farmers Insurance Group, Met Life, Sprint, Security Pacific Bank, the YWCA of Greater Los Angeles, and many more
Benefits of partnering with Above the Standard are:
Above the Standard helps its clients save 10-50% off what they have been paying for their products and services purchases
We can reduce your costs on more than 100 products and services categories, such as utilities, telecom, health insurance, shipping, raw materials, HR, computers, office supplies, MRO, and more
No Cost or Risk (we operate on a pure performance model)
If we don’t save you money, we don’t get paid
Free, no-obligation Cost Savings Analysis
Benefits of partnering with Above the Standard are:
We typically save most clients tens of thousands, hundreds of thousands, even millions of dollars
We greatly increase your buying power by combining the products and services you buy with the purchasing power of many other companies across the country
You gain access to our National Suppliers Network
We put our expert negotiating skills to work on your behalf
We work exclusively for you (not the suppliers)
Benefits of partnering with Above the Standard are:
Requires only very limited time from your staff so you can focus on your core business
Reduce your costs without having to reduce your headcount
We can augment your existing procurement staff, or you can elect to outsource some or all of your entire purchasing activities to us
Benefits of partnering with Above the Standard are:
We provide expert advice, prepare comprehensive RFPs, handle supplier negotiations, help you select the best possible vendors, provide full reporting
We offer procurement-related services including training, consulting, compliance assistance, “green” planning or implementation, and much more
Business Growth Services
The Mission Critical Importance of Cost Reduction are:
Highlighted by the on-going cost cutting debate in Washington, D.C. Businesses find it difficult to grow sales so they are focusing on
attempting to reduce costs Many companies do not have the time, personnel, or knowledge to
most effectively reduce their costs The economy has led to cut backs in revenues to cities,
governments, schools, and non-profits For some companies, their survival or profitability may depend on
their ability to successfully reduce and control their costs
Cost Reduction Comparison:
Suppose Company XYZ desires to increase its sales by $100,000
After factoring in the costs to create $100,000 in new revenues, they will typically net $5,000 to $20,000 (5%-20%)
By comparison, if XYZ Company partners with Above the Standard to reduce their costs by $100,000, it will realize a net improvement to its bottom line of $50,000
In summary, a company or organization can achieve 2.5 to 10 times more net profit improvement by reducing costs their $100,000 versus growing their sales by $100,000
Cost Assessment Findings:
Areas -- Spend Categories Annual Spend
Natural Gas $ 350,000
Chemicals $ 120,000
Shipping $ 40,000
Uniforms $ 15,000
Cleaning Janitorial $ 7,000
Office Supplies $ 7,000
Copiers $ 6,000
Print (business cards, etc.) $ 500
There are eight areas where we believe we
can start to reduce your costs.
Projected Savings $$
$55K - $110K
Based on our average 28% client savings.
If you wish to move forward….
We develop our client engagement agreement which outlines priorities, our compensation as a % of savings, etc.
Competitively bid agreed to categories to incumbent suppliers as well as the ATS premier network
Negotiate best terms with suppliers and present top three bids to STC
STC makes final decision and awards contract
You start saving money!
