Procurement Cost Reduction Client Cost Assessment

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Presentation transcript:

Procurement Cost Reduction Client Cost Assessment Present and leave with clients.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

MEET WORK SAVE What we do: We listen to your needs. with you WORK for you You SAVE money We listen to your needs. We perform a preliminary cost saving analysis. We present a proposal of the areas where costs can be substantially reduced. You engage our service and agree to select a final vendor where cost savings are realized. We prepare detailed RFPs and negotiate with suppliers. RFP finalists are provided, featuring minimum one year fixed fee bids and a comparison between old and new pricing. You select a vendor; reduce costs and increase your bottom line.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

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) Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

Premier Vendors include: Nationwide Janitorial Garza Industries Staples Office World Office Max WB Mason Hanover Uniform Co. Phoenix Textile Corp. Reliatex of Connecticut Utility Reduction Analysts* Seven Utility Management* Independent Energy Consultants Delta Energy LLC Viking Chemicals Grainger Industrial Safety Comp Mark Reid Supply * Strategic Partner

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

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 Defining “procurement outsourcing” is a good idea to both alleviate concerns about outsourcing people, but also to help clients better understand our broad range of services. This link outlines all of the services. http://atsprocurementgroup.com/downloadables/ATSPG%20Procurement%20Services.pdf Second bullet originally stated “experienced supply chain professionals. This makes sense at some clients, esp. manufacturing who understand that term encompasses management of raw materials to final shipment.

Areas -- Spend Categories Based on our average 28% client savings. 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 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!

To learn more… 585-204-0181 savings@ATSnewyork.com www.ATSPG.com