Your VMC Cost Savings Road Map in just two-three weeks we can save your business money on expenses.

REVIEW ANNUAL SPEND BY COMMODITY/SUPPLIER

  1. Focus on categories/commodities that have been targeted for review.
  2. Identify and rank suppliers by spend for each category/commodity.
  3. Does client purchase additional items from these specific suppliers that are not captured in the categories/commodities being reviewed?
  4. Summarize client needs and confirm with client.

PERFORM LEVERAGE ANALYSIS

  1. Determine how to consolidate suppliers by analyzing total spend by supplier and by determining which scenario will maximize the win/win relationship (client/supplier) that you are attempting to design.

PERFORM PRICE TREND ANALYSIS BY SUPPLIER

  1. Analyze pricing on the significant items being purchased. Has the price increased, decreased or remained the same.
  2. Are the suppliers passing on the efficiencies and cost reductions that they have been generating over this period of time through shared savings with the client?

DEFINE A PREFERRED SUPPLY BASE FOR EACH CATEGORY/COMMODITY

  1. Issue an RFP or similar document to appropriate suppliers.
  2. Rank suppliers by using the following information:
    • client feedback regarding their relationships with the suppliers in question
    • the results of the analysis that you just performed
    • your market knowledge
    • results from the RFP

PERFORM VALUE ENGINEERING ANALYSIS WITH PREFERRED SUPPLY BASE

  1. Work with client and suppliers and reevaluate exactly what is being purchased in order to minimize costs.
    • can it be redesigned or standardized to reduce costs?
    • is it over engineered?
    • can it be eliminated or can substitutions be used?

REVIEW ADMINISTRATIVE MATERIALS PROCESSES

  1. Can the processes related to the ordering of the commodity be enhanced with the goal of increasing efficiencies and reducing costs of both client and supplier?

NEGOTIATE FINAL TERMS AND IMPLEMENT RECOMMENDATIONS

    1. Negotiate final terms with preferred suppliers.
    2. Implement recommendations.

Does This Industry Research Data Match Your Business?

“It is estimated that each $1 in cost savings has the same impact as $4 in new revenue.”

“67% of CFOs believe managing indirect expenses is an important strategy for improving their business. 50% said “lowering costs from suppliers “ is one of their biggest challenges in expense management.”

“Approximately 60% of expense reduction savings erode in 18 months because supplier performance is not monitored, best buying practices are not consistently used or end users lose focus on expense reduction.”


“40% of CEOs and CFOs are planning to utilize a third party to help manage their procurement expenses within the next two years.”

Let’s grow your business by taking a really close look at your vendor relationships, and costs.

9 + 8 =

In just two to three weeks, we will drive down my road map to cost savings.

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