- Expense Reduction
- Procurement & Sourcing
- Profit Improvement
1. Why do we need a business consultant? Why can’t we do this ourselves?
Most employees are not equipped with the knowledge to effectively identify potential savings and re-negotiate contracts. However, professional cost reduction consultants are able to quickly pinpoint key areas that can help you realize remarkable savings and minimize risks. Your company may understandably be limited by your solo purchasing leverage. Having a professional business consultant take care of your cost containment function will get you the benefit of the combined expertise and leverage of multiple, dedicated teams of cost reduction consultants.
2. What are the main characteristics of your Cost Reduction Company?
- You pay us only if we save you money. No savings, no fee!
- We hire and maintain only the best cost reduction consultants ensuring top savings.
- We have a dedicated account manager for personalized attention.
- Our “No compensation from vendors” policy ensures an impartial audit.
- We work off-site, ensuring minimal interruption to your work.
- We offer smart savings, helping you create better spend management
- We base our work on a comprehensive cost reduction analysis that results in the maximum savings possible.
- We leverage our expertise to streamline non-core services.
3. How much can we expect saving as a result of an operating cost reduction audit by your cost saving consultants?
Ordinarily, with our operating cost reduction audit you can expect savings to come in anywhere between 10% and 40%, however, it does depend on the type of company you have, the size, the number of locations, and generally how your company is run. Companies that perform regular audits by in-house expense reduction analysts tend to be more efficiently run, but these companies may also benefit from audits from outside cost reduction companies who have more expertise in too often overlooked non-core and overhead cost categories, and can perform these tasks more efficiently and with more industry-specific methods and tools.
4. What kind of cost centers will your cost reduction analysis cover?
We focus our superior cost reduction analysis on 3 major areas:
- Expense Reduction (E.g. Telecom, Utilities, Insurance and benefits, Payroll, Travel, Card fees, Office supplies, Printing)
- Procurement & Sourcing (E.g. Packaging & Labels, Raw Materials, Mail management)
- Profit Improvement (E.g. Overcharges, Billing Mistakes, Freight, Overnight Delivery)
5. How do you calculate my realized savings?
Your realized savings are calculated through the following process:
- Ascertaining your Pre-Existing rates/costs (i.e. before our cost reduction plan).
- Subtracting the rate/costs (resulting from our Cost Reduction Plan implementation) from the Pre-Existing Rate/Cost
- Multiplying the above difference by the purchases made during predefined period.
6. What level of involvement will be required by our staff?
We believe that smart spend management is best achieved through a streamlined work environment. To this end, our cost reduction consultants work in a manner that requires minimal involvement by your staff. We will have a detailed initial meeting with your staff a precursor to our cost reduction analysis. After that we will be mostly offsite, without interrupting your work process.
7. What is required in order for you to get started?
To begin, we will require a signed letter of authorization and contract. Our contract is a simple 2 page document that is easy to understand and which simply outlines our cost reduction services and the responsibilities and obligations of our expense reduction analysts as well as the 100% only profit-sharing compensation structure. Once we have this, we can then begin the process to assist you with business cost cutting.
8. How long does a business cost cutting audit typically take?
From beginning to end, you can expect an audit to take from couple of weeks to several months and will vary depending on the scope of your project.
9. What industries do you serve?
Our superior cost reduction analysis and Cost Reduction Plans are the choice of entrepreneurs and smart business executives from diverse industries including:
- Service Industry
- Health Care
10. How do you make money?
We charge our clients agreed upon percentage of the realized savings during the predefined number of months. After that, all savings are 100% that of the client.
11. Is a contract necessary if there are no upfront costs?
A contract for our cost reduction services must be in place because it outlines our responsibilities, as well as the 100% contingency based compensation structure that we abide by. In order for an audit to commence, we must receive a signed contract on behalf of your company.
12. How far back do you go when conducting a recovery audit?
Our expense reduction analysts typically conduct a recovery audit on a range of invoices going back 3 years. However, it’s important to note that we have to remain with your state’s or province’s statute of limitations.
13. Are we obligated to implement the suggestions of your expense reduction analysts with respect to savings?
No, you are not obligated to implement any of expense reduction analysts’ suggestions. We are here to offer you our guidance on business cost cutting options along with excellent cost reduction services, but the final decision is up to you and your company.
14. Do you permit compensation by vendors?
To remain objective in the cost reduction services we render, we do not accept any compensation from vendors.
15. Are you a waste and recycling company that I can enlist to haul away my trash/recycling?
We are one of several leading cost reduction companies in this industry. Our company DOES NOT offer waste and recycling haul away services; our cost saving consultants do, however, provide cost reduction consulting services which entail having our team of expense reduction analysts review the methods that you use in order to determine if you can save money by changing methods and/or services or by bettering your rates.
16. Can I take some time to think about having a cost reduction analysis done?
Conducting any type of cost reduction analysis is totally up to you, and you may take your time assessing what you would like to do. Given that we do not charge any upfront fees, you will have no out-of-pocket expenses if you elect to implement our recommended course of action to realize savings. Given the state of the economy, many business owners are finding savings a great way to boost their profits and to help them through this very tough economic time.