Vendor Management Consulting
Frequently Asked Questions
Who is Vendor Management Consulting?
We provide “Corporate Cost Reduction” services using systems in use since 1989. VMC consists of former purchasing, negotiating and marketing professionals from top corporations with diverse areas of expertise. While our clients might have direct contact with only one of our professionals, there could be a number of us working on your project.
What We Can Do For Your Business?
We will save your company money by establishing lower prices for goods and services of the same or higher quality from, and in most cases, your current supplier or an approved new source. We also make recommendations as to how to improve your procurement process.
How We WiIll Work With Your Business
We apply the most current purchasing methods to your most cost sensitive requirements. We can negotiate new or renegotiate current contracts based on your current and future volumes. We intensely research markets and take the time to determine the highest value provider available.
What Does It Cost To Engage With Vendor Management Consulting?
Our service is truly risk and cost free. Our fees are completely “pay for performance” based and will accrue only when your company realizes actual and documented savings. In a typical engagement, the client will split any savings with VMC over a 24-month period. After that, the supplier contacts, price agreements and savings belong to our client.
How We Can Get Started Saving Your Business On Vendor Expenses?
We briefly meet with you to determine your needs and parameters and to determine which expense categories might be beneficial to examine. Next, we gather purchasing information (usually a few recent invoices) from your company or from your current supplier. This information is used as the basis for benchmarking your costs, evaluating your requirements and developing an RFP. All quotations and negotiations are handled directly by VMC and do not require any of your resources or facilities.
What Does VMC Provide For Your Business?
We provide a detailed written report containing our recommendations for saving money on the chosen Expense Category. The recommendations will include previous pricing from your current supplier, any renegotiated prices from this same supplier as well as equivalent third-party quotations. The decision is yours to take whatever action you deem to be the best. ERC will also assist in implementing any recommendations.
What Is Your Financial Obligation?
None! If for any reason you do not like our recommendations, you are under no obligation to implement them. In this event, since our compensation is solely based on actual, documented cost savings, no fee is charged.
The Key Advantage To Engaging with A Third-Party To Negotiate Your Vendor Expenses.
The introduction of a third party into the purchasing process will cause suppliers to seriously reevaluate their position. In addition, being contingency rather than rate based, our fee structure motivates us to save you the maximum amount of money. If we don’t save you money, we don’t make money!
Most importantly, we do not represent any suppliers and are completely objective. We work exclusively for our clients. As purchasing professionals, we offer the experience, expertise and negotiating skills not readily available in many companies and we will devote all of our time and resources to obtaining the best possible value for your company.
What You Will Be Able To Do After You Work With VMC.
Using VMC to analyze research and negotiate for you will allow you and your employees to focus on your core business tasks, yet maintain a firm handle on those controllable costs that can significantly affect your bottom line.