Cost Reduction Strategies
Alliance Cost Containment <ul><li>Industry leader since 1992 </li></ul><ul><li>42 locations, 72 full time employees </li><...
Goods and Services <ul><li>Break room, Beverage  Supplies  Office Products </li></ul><ul><li>Cell Phone Service   Overnigh...
Aberdeen Research <ul><li>What Enterprises Want from Procurement Outsourcing </li></ul><ul><ul><li>Access to improved pric...
Aberdeen Research <ul><li>Best-in-Class Performance: </li></ul><ul><ul><li>32% of companies outsource some procurement </l...
In-House or Outsource? <ul><li>Why Outsource Cost Reduction?? </li></ul><ul><ul><li>You have limited internal resources </...
Alliance Cost Containment <ul><li>ACC steps to savings through Strategic Sourcing </li></ul><ul><ul><li>Preliminary cost s...
Sampling of Client Savings
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Overhead cost containment

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Alliance Cost Containment is the route to overhead cost reduction for the midmarket company.

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Overhead cost containment

  1. 1. Cost Reduction Strategies
  2. 2. Alliance Cost Containment <ul><li>Industry leader since 1992 </li></ul><ul><li>42 locations, 72 full time employees </li></ul><ul><li>Over 1000 clients (Pepsi, Toyota & SYSCO) </li></ul><ul><li>Annual savings in excess of $30MM or <13% </li></ul><ul><li>Gain-sharing fee structure: 50/50 for 18 months </li></ul><ul><li>No billings until actual savings =no risk </li></ul><ul><li>No net cost, immediate profit improvement </li></ul><ul><li>Group purchasing and Subject Matter Experts </li></ul><ul><li>Huge supplier network and national contracts </li></ul><ul><li>State of the Art web based bid process </li></ul>
  3. 3. Goods and Services <ul><li>Break room, Beverage Supplies Office Products </li></ul><ul><li>Cell Phone Service Overnight Delivery </li></ul><ul><li>Computer Hardware Packaging/Corrugated Supplies </li></ul><ul><li>Computer Supplies Paint </li></ul><ul><li>Copy Machines/Supplies Pallets </li></ul><ul><li>Copy Paper Payroll Service </li></ul><ul><li>Credit Card Processing Printing/Forms </li></ul><ul><li>Electrical Supplies Printer Service </li></ul><ul><li>Electrical Use Promotional Products </li></ul><ul><li>Equipment Service Contracts Records Storage </li></ul><ul><li>Express Mail Safety/ First Aid Supplies </li></ul><ul><li>Fasteners Service Maintenance </li></ul><ul><li>Fleet Vehicles & Maintenance Shredding Service </li></ul><ul><li>Freight-Global/LTL /Courier/Parcel Tax Recovery/ R&D </li></ul><ul><li>Furniture Telecom –Land/IT/Wireless </li></ul><ul><li>Gases -Natural, Propane Temporary Staffing </li></ul><ul><li>Hazardous Waste Uniforms </li></ul><ul><li>Janitorial Supplies Utilities </li></ul><ul><li>Lab Supplies Warehouse/Mailroom Supplies </li></ul><ul><li>MRO/Maintenance Waste Disposal </li></ul><ul><li>Natural Gas Welding Supplies </li></ul>
  4. 4. Aberdeen Research <ul><li>What Enterprises Want from Procurement Outsourcing </li></ul><ul><ul><li>Access to improved pricing (66%) </li></ul></ul><ul><ul><li>Access to spending category expertise (50%) </li></ul></ul><ul><ul><li>Lower transactional processing costs and fewer burdens (50%) </li></ul></ul><ul><ul><li>Access to supplier intelligence (45%) </li></ul></ul><ul><li>Source: The Procurement Outsourcing Benchmark Report, Aberdeen Group, May 2006 </li></ul><ul><li>“ The decision to outsource is driven by whether a third party could </li></ul><ul><li>realize greater benefits in less time than your own company could.” </li></ul><ul><li>Source: “Out with the Old,” European Leaders in Procurement, 2005 </li></ul>
  5. 5. Aberdeen Research <ul><li>Best-in-Class Performance: </li></ul><ul><ul><li>32% of companies outsource some procurement </li></ul></ul><ul><ul><li>12.6% indirect spend savings due to outsourcing </li></ul></ul><ul><ul><li>30% lower costs to process requisitions </li></ul></ul><ul><ul><li>Higher rate of compliance to contractual agreements </li></ul></ul><ul><ul><li>Currently outsourcing 59% to 75% of their spend </li></ul></ul><ul><ul><li>Source: 2007 Procurement Outsourcing Report, Aberdeen Group, 2007 </li></ul></ul>
  6. 6. In-House or Outsource? <ul><li>Why Outsource Cost Reduction?? </li></ul><ul><ul><li>You have limited internal resources </li></ul></ul><ul><ul><li>You want access to group buying power </li></ul></ul><ul><ul><li>You want access to subject matter experts in targeted areas </li></ul></ul><ul><ul><li>You want access to marketplace intelligence and benchmark pricing </li></ul></ul><ul><ul><li>You want a rapid ROI </li></ul></ul>
  7. 7. Alliance Cost Containment <ul><li>ACC steps to savings through Strategic Sourcing </li></ul><ul><ul><li>Preliminary cost savings analysis </li></ul></ul><ul><ul><li>Client engagement </li></ul></ul><ul><ul><li>Spend analysis </li></ul></ul><ul><ul><li>Supplier negotiations </li></ul></ul><ul><ul><li>Findings & recommendations report </li></ul></ul><ul><ul><li>Cost savings implementation </li></ul></ul><ul><ul><li>Vendor management & invoice auditing </li></ul></ul>
  8. 8. Sampling of Client Savings
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