Company Resources are Overwhelmed!
Poorly managed vendors is causing critical oversight is costing and resulting in businesses losing tens of thousands.
If you are here you are concerned about over payment and vendor contacts that are not “clearly visible” and not performing effectively or efficiently leaving to much room for errors. You may have considered a vendor management solution in the past but haven’t fully (made a decision) – change that to something else on the next step. Why?
One of the most common reasons we have discovered is “Clients believe they have this handled and it will be too tasking on there teams”.
These are all fallacies and here is why:
- MY PEOPLE HAVE THIS COVERED – FALSE!!! as in 98%+ cases DO NOT have the benchmark analytics or process to effectively negotiate the best rates, terms and conditions for 3rd party indirect spends.
- AP – DOES THIS. FALSE!!! AP DOES NOT have the time – NOR do they Perform Auditing in the appropriate way on a monthly basis. This is because the systems in most cases for indirect spends DO NOT have a way to compare individual price points to contracts rates or market determining variables: i.e. taxes, tariffs, rate escalators, metering changes, etc. AND they DON’T have the time when “CRUNCHING IN” MONTH END!
- IT WILL TAKE TOO MUCH OF MY PEOPLE’S TIME – FALSE!!!
- DATA COLLECTION – A Billing Optimization process needs a Single LOA signed by a Top Level Executive, and only ONE copy of a detailed bill. We can obtain all the contracts and supporting information from the vendors with this simple information. WHEN more than a single LOA Is needed we work with the right personnel to sign a FULLY PREPARED LOA for them. They just need to sign. (less than a minute of work even if they did read the entire LOA.
- FOLLOW UPS BASED ON RECOMMENDATIONS – This is a necessary step because we CANNOT disconnect or eliminate services which may require verification of viability form the Department or Field personnel. The Client time of VERIFIYING these services compared to what we do to find the errors or discrepancies is 1/20th of what we do to drive out unnecessary costs.
- IMPLEMENTATION OF RECOMMEDATIONS – “0” time on the Clients part as WE PERFORM THE IMPLEMENTATION.
- VERIFICATION BEFORE BILLING – In 90% of all cases we can obtain the bill from the Vendor so MINIMUM TIME IS SPENT BY CLIENT.
- THIS SHOULD BE DONE IN 4-6 WEEKS. FALSE!!! It takes time to do a THOROUGH DEEP FORENSIC REVIEW of spends and contract terms. Also, ALL CONTRACTS cannot be NEGOTIATED at the same time DUE TO CONTRACT END DATES. A Process like this could take some time but IT IS WORTH THE OUTCOME IN EVERY CASE!
And Then….What about Inspections, Certifications, Licenses, Preventative Maintenance, Assets, etc….
FOR EVERYTHING ELSE there is VMS!!!
What would you like to know? If you would like more information contact us and let us know.