CASE STUDIES - MORE RESULTS
Telecommunications
Client with 68 locations had a fragmented Telecommunications spend with no controls or examination whatsoever. There was constant change in locations and scope.
Result: Our audit revealed 888 invoices annually from 27 different telecomm providers, covering in excess of 4000 telephone numbers. After gaining an understanding of the specific details of their current situation, we eliminated erroneous billings and charges, renegotiated with current providers, streamlined the systems, recovered refuted charges, and negotiated significantly reduced rates going forward. Overall telecomm reductions were 31%.
Total savings: $411,000
Client had 16 plants using a total of five different companies to provide Uniform Rentals, was paying top dollar, and had no standardization in their uniforms.
Result: We ran an audit of each plant, researched all their quality and service needs and their costs, put the business out for bid, negotiated after the initial results came in, and saved 35% per year for the 3-year length of the contract.
Total savings: $256,000
Client had been using the same Personnel Staffing company for years, and having grown accustomed to them, had stopped auditing the mark-ups being applied to the salaries of the hires.
Result: Through our audit process, we discovered the mark-up rates, researched the marketplace of prestigious national companies, and negotiated a three-year deal with one of them. The reduction of the mark-up was 52%.
Total savings: $72,000
Pharmaceuticals & OTC Medications:
Client had a long-standing, under-analyzed relationship with a local pharmacy for buying Pharmaceuticals & OTC Medications. Client had accepted small price increases annually whose cumulative impact was sizable.
Result: Upon detailed analysis of product mix and usage, we took it to bid, and reduced the client’s direct costs by 16.4 % over a two-year period
Total savings: $194,000
Client bought Lab Supplies from four different distributors, none of whom was motivated to offer optimum pricing.
Result: We bid out the business between the two national suppliers, and achieved a 15.4% pricing reduction for the two-year length of the agreement.
Total savings: $48,000
Client bought Medical Supplies from several distributors. Our audit showed that two of the suppliers combined could meet 100% of their needs.
Result: The two selected suppliers were able to reduce client’s overall product costs by 24.8% in return for the increase in volume each received. Each was able to offer a two-year pricing commitment.
Total savings: $74,000
Client bought Office Supplies at what appeared to be competitive pricing for contract items. Our audit revealed that the contract items represented only a small portion of the total spend. Our market research demonstrated what was possible.
Result: Lowered pricing overall, and increased portion of contract spend, for an overall reduction of 13.2% of the total office supply spend.
Total savings: $39,000
Client was nearing the end of a three-year contract with an MRO storeroom supply company who had several cost-adding clauses in the original contract. After seeing what was available from other major storeroom-operation organizations, we renegotiated a new contract from scratch with the incumbent.
Result: We eliminated the most unfavorable clause, modified three others, and arranged the retroactive cancellation of another (resulting in forgiveness of a portion of monies owed), saving 10.9%
Total savings: $261,500
Client had never examined Utilities (electric, gas, water), asked us to perform these audits. We evaluated rates, riders and historical problems with each provider.
Result: Among rebates to client for past errors, ongoing rate reductions and operational adjustments, savings were 23%.
Total savings: $298,000