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Finding hidden savings for  [company name] ,[object Object]
1 .  Introduction to Expense Reduction Analysts 2.  Understanding [company] 3.  Working with ERA 4.  Next steps
About Expense Reduction Analysts ,[object Object],[object Object],[object Object],[object Object]
About Expense Reduction Analysts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CFO/ERA white paper ,[object Object],[object Object],[object Object],[object Object]
CFO/ERA white paper conclusions ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Office Supplies Packaging Payroll Processing Print Services  Records Management Small Package Freight Telecommunications Temporary Labor Travel Uniforms, Linens and Laundry Utilities Waste Management Many others . . .  Cost categories we review
Savings – Specialty Chemicals Client — Ceramics manufacturer Spend — $336,000 Annual Savings — 31% Hidden Savings — $ 103,000 for year one; $301,450 for subsequent years as capacity expands  The client knew Consultants had superior technical and industry expertise to handle an analysis of both its core and non-core specialty chemicals spend.
Client — Wholesale distributor Spend — $2.1 million a year Annual Savings — 23%  Hidden Savings — $400,000 a year ____________________________   13% 17.8% Savings – Freight  (LTL, FTL, International) Client — Manufacturer Spend — $256,000 a year Annual Savings — 34%  Hidden Savings — $73,000 a year Industry expertise and propri- etary benchmark data led to better pricing with tiered rates
Savings – Janitorial Services/Supplies  Client — USSI, Inc.   Janitorial service provider Spend — $2.2 million Annual Savings — 16.5%  Hidden Savings — $363,000 a year Client — Regional Bank   30+ branches Spend — $250,000 Annual Savings —16% Hidden Savings — $40,000 a year ____________________________ “ These savings help us main- tain current pricing levels and reduce pressure on profit margins.”   ~ Stephanie Nester USSI Controller
13% Savings - Merchant Card Processing Client — NutriSystem Spend — $370,000 Annual Savings — 59%  Hidden Savings — $220,000 a year ____________________________  Client — Goodwill of the Heartland Spend — $84,000 Annual Savings — 25%  Hidden Savings — $21,000 a year  “ It didn’t take me long to appreciate ERA’s professionalism and innovation.”   ~  Tammie Erb, CFO  Goodwill of the Heartland
Savings – Office Consumables Client — Regional hospital network Spend — $370,000 Annual Savings — 33% average   over 3-year contract Hidden Savings — $400,000 a year    over 3-year contract  Client — Law firm Spend — $68,000 Annual Savings — 23.5% Hidden Savings — $16,000 a year ____________________________ Three-year contract with the existing supplier beat national GPO pricing
Savings – Packaging Client — Cosmetics and consumer    products manufacturer Spend — $450,000 Annual Savings — 33%  Hidden Savings — $150,000 a year Client — Universal Printing and    Manufacturing Company Spend — $325,000 Annual Savings — 21% Hidden Savings — $68,200 a year ____________________________ “ I’m glad we asked for ERA’s assistance. We’re pleased with the savings found.”  ~ Mike Dehlic Vice President-Operations Universal Printing
Savings – Payroll Processing Client — Engineering firm   200 employees Spend — $38,000 Annual Savings — 28%  Hidden Savings — $10,500 Client — Manufacturer   1,300 employees Spend — $150,000 Annual Savings — 45% Hidden Savings — $67,500 a year ____________________________ Many companies rely on big industry players, but end up paying for features they do not use
Client  —  National insurance broker Spend — $379,000 Annual Savings — 30%  Hidden Savings — $113,000 a year ____________________________    13% 17.8% Savings – Printing Services Client  — Robotics manufacturer Spend — $35,400 Annual Savings — 20%  Hidden Savings — $7,080 a year Insurance broker was able to increase funding for marketing projects to help grow business
Savings – Records Management Client — Architectural firm Spend — $47,500 Annual Savings — 63%  Hidden Savings — $30,000 a year Client — Healthcare system Spend — $304,500 Annual Savings — 60% Hidden Savings — $182,000 a year ____________________________ Consultants compare contract terms, security, delivery performance, storage costs and exit fees against industry benchmarks
Client  —  Sun Microstamping Spend — $105,000 Annual Savings — 28%  Hidden Savings — $29,500 a year ____________________________    13% 17.8% Savings - Small Package Freight Client  —  Universal Printing   & Manufacturing Spend — $439,000 Annual Savings — 21%  Hidden Savings — $92,190 a year “ I know ERA will ensure we are getting the best value for our dollar.”  ~ Michael Shirley, CFO Sun Microstamping
Savings - Telecommunications Client — AFC Worldwide Express Spend — $410,000 Annual Savings — 16%  Hidden Savings — $63,800 a year ____________________________  Client — Agricultural company Spend — $187,000 Annual Savings — 25% year one;   12% every year thereafter Hidden Savings — $47,000 year one;   $21,600 every year thereafter ERA immediately spotted overcharges and billing errors and secured retroactive adjustments of $25,000+ for agricultural company.
Savings – Temporary Labor Client — Gourmet snacks producer Spend — $2.3 million Annual Savings — 15%  Hidden Savings — $350,000 a year Client — HVAC manufacturer Spend — $302,750 Annual Savings — 25% Hidden Savings — $75,700 a year ____________________________ Industry experts evaluate providers on net billable rates, performance, service and payment terms
Savings – Waste Management Client — National restaurant chain Spend — $842,000 Annual Savings — 19%  Hidden Savings — $162,000 Client — Sun Microstamping      Technologies Spend — $38,000 Annual Savings — 37% Hidden Savings — $14,000 a year ____________________________ Clients are often told they are getting the best prices possible. ERA industry knowledge and benchmark data counter these assertions.
Understanding your company ,[object Object],[object Object],[object Object],[object Object]
Understanding your company ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Understanding your company
Working with ERA -  Compensation ,[object Object],[object Object],No savings, no fee
Working with ERA  ,[object Object],[object Object],[object Object],[object Object]
Implementation Gather data; meet with stakeholders;  analyze spend  ACTIVITY Issue RFPs; evaluate results Select suppliers;  implement recommendations; validate full implementation DELIVERABLE Baseline Report Recommendation Report Implementation FEES None 10% of total savings 10% of total savings; balance to be paid over next 24 months Baseline Report Recommendation  Report Review TIMEFRAME From start of project 30 days 60 days  95 days Monthly/Quarterly for 24 months Continue monitoring price and quality; verify ongoing savings  If necessary:  Make adjustments and correct supplier non-compliance Balance of 24-month contract fees Working with ERA –  Process Timeline
Next steps ,[object Object],[object Object],[object Object],[object Object],[object Object]

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5 Initial Meeting Cel Ppt 050109

  • 1.  
  • 2.
  • 3. 1 . Introduction to Expense Reduction Analysts 2. Understanding [company] 3. Working with ERA 4. Next steps
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Savings – Specialty Chemicals Client — Ceramics manufacturer Spend — $336,000 Annual Savings — 31% Hidden Savings — $ 103,000 for year one; $301,450 for subsequent years as capacity expands The client knew Consultants had superior technical and industry expertise to handle an analysis of both its core and non-core specialty chemicals spend.
  • 10. Client — Wholesale distributor Spend — $2.1 million a year Annual Savings — 23% Hidden Savings — $400,000 a year ____________________________ 13% 17.8% Savings – Freight (LTL, FTL, International) Client — Manufacturer Spend — $256,000 a year Annual Savings — 34% Hidden Savings — $73,000 a year Industry expertise and propri- etary benchmark data led to better pricing with tiered rates
  • 11. Savings – Janitorial Services/Supplies Client — USSI, Inc. Janitorial service provider Spend — $2.2 million Annual Savings — 16.5% Hidden Savings — $363,000 a year Client — Regional Bank 30+ branches Spend — $250,000 Annual Savings —16% Hidden Savings — $40,000 a year ____________________________ “ These savings help us main- tain current pricing levels and reduce pressure on profit margins.” ~ Stephanie Nester USSI Controller
  • 12. 13% Savings - Merchant Card Processing Client — NutriSystem Spend — $370,000 Annual Savings — 59% Hidden Savings — $220,000 a year ____________________________ Client — Goodwill of the Heartland Spend — $84,000 Annual Savings — 25% Hidden Savings — $21,000 a year “ It didn’t take me long to appreciate ERA’s professionalism and innovation.”   ~ Tammie Erb, CFO Goodwill of the Heartland
  • 13. Savings – Office Consumables Client — Regional hospital network Spend — $370,000 Annual Savings — 33% average over 3-year contract Hidden Savings — $400,000 a year over 3-year contract Client — Law firm Spend — $68,000 Annual Savings — 23.5% Hidden Savings — $16,000 a year ____________________________ Three-year contract with the existing supplier beat national GPO pricing
  • 14. Savings – Packaging Client — Cosmetics and consumer products manufacturer Spend — $450,000 Annual Savings — 33% Hidden Savings — $150,000 a year Client — Universal Printing and Manufacturing Company Spend — $325,000 Annual Savings — 21% Hidden Savings — $68,200 a year ____________________________ “ I’m glad we asked for ERA’s assistance. We’re pleased with the savings found.” ~ Mike Dehlic Vice President-Operations Universal Printing
  • 15. Savings – Payroll Processing Client — Engineering firm 200 employees Spend — $38,000 Annual Savings — 28% Hidden Savings — $10,500 Client — Manufacturer 1,300 employees Spend — $150,000 Annual Savings — 45% Hidden Savings — $67,500 a year ____________________________ Many companies rely on big industry players, but end up paying for features they do not use
  • 16. Client — National insurance broker Spend — $379,000 Annual Savings — 30% Hidden Savings — $113,000 a year ____________________________ 13% 17.8% Savings – Printing Services Client — Robotics manufacturer Spend — $35,400 Annual Savings — 20% Hidden Savings — $7,080 a year Insurance broker was able to increase funding for marketing projects to help grow business
  • 17. Savings – Records Management Client — Architectural firm Spend — $47,500 Annual Savings — 63% Hidden Savings — $30,000 a year Client — Healthcare system Spend — $304,500 Annual Savings — 60% Hidden Savings — $182,000 a year ____________________________ Consultants compare contract terms, security, delivery performance, storage costs and exit fees against industry benchmarks
  • 18. Client — Sun Microstamping Spend — $105,000 Annual Savings — 28% Hidden Savings — $29,500 a year ____________________________ 13% 17.8% Savings - Small Package Freight Client — Universal Printing & Manufacturing Spend — $439,000 Annual Savings — 21% Hidden Savings — $92,190 a year “ I know ERA will ensure we are getting the best value for our dollar.” ~ Michael Shirley, CFO Sun Microstamping
  • 19. Savings - Telecommunications Client — AFC Worldwide Express Spend — $410,000 Annual Savings — 16% Hidden Savings — $63,800 a year ____________________________ Client — Agricultural company Spend — $187,000 Annual Savings — 25% year one; 12% every year thereafter Hidden Savings — $47,000 year one; $21,600 every year thereafter ERA immediately spotted overcharges and billing errors and secured retroactive adjustments of $25,000+ for agricultural company.
  • 20. Savings – Temporary Labor Client — Gourmet snacks producer Spend — $2.3 million Annual Savings — 15% Hidden Savings — $350,000 a year Client — HVAC manufacturer Spend — $302,750 Annual Savings — 25% Hidden Savings — $75,700 a year ____________________________ Industry experts evaluate providers on net billable rates, performance, service and payment terms
  • 21. Savings – Waste Management Client — National restaurant chain Spend — $842,000 Annual Savings — 19% Hidden Savings — $162,000 Client — Sun Microstamping Technologies Spend — $38,000 Annual Savings — 37% Hidden Savings — $14,000 a year ____________________________ Clients are often told they are getting the best prices possible. ERA industry knowledge and benchmark data counter these assertions.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Implementation Gather data; meet with stakeholders; analyze spend ACTIVITY Issue RFPs; evaluate results Select suppliers; implement recommendations; validate full implementation DELIVERABLE Baseline Report Recommendation Report Implementation FEES None 10% of total savings 10% of total savings; balance to be paid over next 24 months Baseline Report Recommendation Report Review TIMEFRAME From start of project 30 days 60 days 95 days Monthly/Quarterly for 24 months Continue monitoring price and quality; verify ongoing savings If necessary: Make adjustments and correct supplier non-compliance Balance of 24-month contract fees Working with ERA – Process Timeline
  • 28.