The document outlines a 10-step process for reducing procurement costs. It begins with gathering spending data, analyzing key budget areas, and determining criteria for "best value." Request for proposals are created and sent to current and potential vendors. Proposals are evaluated and a winning vendor is selected. A contract is signed with the new vendor, and savings from lower pricing are implemented and quantified. The goal is to reduce costs while improving quality, service levels, and control over the procurement process. An example shows one client reducing office supply costs by 52% while centralizing numerous vendors into one.

1. ®
Experts in Profit Maximization & Business Growth Services
©Above the Standard Procurement Group®, Inc.
KEYWORDS Abstract: Below is a high level process of the procurement cost reduction processes we
have used successfully for more than 30 years for organizations from small to large (keep in
mind that we have always reduced costs in more than 98% of the clients we have engaged,
with an average savings of more than 28%).
©Above the Standard Procurement Group®, Inc.
Available online at www.atsprocurementgroup.com
10 Steps to Reducing What
You Pay on Goods & Services
Core Value to You
Above the Standard Procurement Group®, Inc. (Above
the Standard) would like the opportunity to serve
Your Organization like we have done for many other
best in practice organizations. Above the Standard
can help you in many ways. Our procurement cost
reduction core competencies are:
„„ No Risk to You.
„„ No Cost Assessment to You.
„„ Very little time required by your staff.
„„ Above the Standard conducts most of the work.
„„ Quality and best value is part of the cost reduc-
tion.
„„ Above the Standard provides results without staff
overhead to you.
„„ Above the Standard works alongside you and
your staff as a long-term partner.
„„ Above the Standard does not go through your
invoices (in 99% o the cases).
„„ Above the Standard is a robust, fully scalable,
global procurement and finance firm that can
meet your many needs in this space.
„„ Your information and anything Above the Stan-
dard does with you is safe as we sign a mutual
NDA that covers one another throughout each
project.
„„ Our process creates some of the most document-
ed and compliant driven procurements.
„„ Above the Standard is not paid by your organiza-
tion unless the cost is reduced (pertains to each
good/service).
The ten steps outlined in this overview document
provide you a high level overview of what to expect
in the Above the Standard process. With our proprie-
tary and long-term success driven methodologies, we
know we can bring you results as a long-term partner.
Email: Mikoriordan@gmail.com

2. 2 www.ATSProcurementGroup.com.
©Above the Standard Procurement Group®, Inc.
Step 1 – Gather information
Above the Standard gathers information about all
budget areas of goods and services identified in your
organization. We prioritize these spend areas from
largest to smallest expenses, potential areas for
greatest savings, what are Your important needs, as
well as any other areas we outline together.
Step 2 – Complete Analysis of the
Budget Areas
We then complete an analysis and work with your
team (Finance, IT, Administration, Operations, Human
Resources, Executive Management, and any other
department / team / person involved in the process)
to ensure that there is agreement, unity, and buy in
for what is most important in cost reduction, need,
goals, strategy, and processes. In other words, we
categorize each area from first, second, and so forth
for each area.
Step 3 – Best Value Determination
After You and Above the Standard has determined
the areas to bid, based on spend, priority, the team’s
input, the organizations needs, and strategy, it is very
important that the procurement department have an
outline of what “Best Value” for each item means to
the organization.
Each organization, within each industry, will define
best value differently. Some example areas for you to
consider outlining, creating, and implementing are:
„„ Negotiate improved pricing;
„„ Product and service quality;
„„ Delivery times;
„„ Return authorization process;
„„ Invoicing;
„„ Payment terms;
„„ Green compliance;
„„ Federal Government policy and procedures (FAR
/ DFAR);
„„ Sarbanes Oxley (SOX);
„„ Quarterly analysis;
„„ Reporting;
„„ Online ordering;
„„ National / Regional vendor;
„„ 24-Hour delivery;
„„ Vendor audit;
„„ Etc.
Step 4 – Team Communication
We will then communicate with those involved in
each project one project at a time as it relates to what
is important to You and Your Organization (best value
– this part is very important in the entire process).
The information gathered during this process will lay
the foundation for the Request for Proposal (RFP) /
Scope of Work (SOW) letter bidding process. An RFP
SOW letter is the basis of what each vendor will use
for proposal submission. This document is the most
important part of the RFP process because this will
provide an outline to those vendors involved you’re
your needs. The clearer this document, the better the
proposals we will receive.
Step 5 – Create RFP SOW Letter
Above the Standard will create a detailed RFP SOW
letter for the selected good(s) and/or service(s),
based upon our no cost assessment, your needs and
input, and agreed upon procurement cost reduction
projects. This will then be finalized by you to ensure
all areas of importance for best value are outlined.
Once all parties agree that their area is clear and
understandable, a final document will be created for
submission to the vendor’s Your Organization utilizes
in these areas, along with our vendors in the specific
goods and/or services selected.
Step 6 – Send Information to
Vendors
With the RFP SOW letter and your other documents
in the RFP package, Above the Standard will initiate
the bid process. The vendors we select will be from
those whom you currently utilize for the goods and/
or services, as well as new vendors selected by ATS,
those from your e-procurement system, and other
vendors who have solicited you in the past (these will
be provided to Above the Standard from your finance
department). The number of vendors we solicit
(submit the bid to) could be from few to many. For
example, we had one client purchasing office supplies
from more than seventy companies across the U.S.
One of the documents that we will include in the bid
process is the “Master List”. This is a list of items that
have been purchased over a given period of time from
each vendor. Each current vendor you utilize will be

3. 3
Do not use or reproduce without written permission from Ted Landgraf/Above the Standard Procurement Group®, Inc.
Ten Steps to Cost Reduction
instructed by Above the Standard to fill out this tem-
plate MS Excel spreadsheet and email this back to us
(see example layout below). From this, we will create
the master list of all the vendors, the items purchased
over a period of time, the cost, etc. This spreadsheet
will be sent out with the RFP SOW letter (without any
pricing) to each proposed vendor to send back to us
with their proposal (this will include their proposed
pricing as well).
These individual lines items, when totaled, will aggre-
gate to a total cost and provide a basis for award.
Example: One of our clients was purchasing more
than 6,000 different office supplies. Above the Stan-
dard conducted all the work and not only reduced
their office supplies cost by 52%, centralized more
than 70 suppliers into one, increased quality, but also
controlled what was purchased.
Example Master List
Your Item # Manufacturer /
SKU #
Item Descrip-
tion
Brand
Name (3M,
Staples,
Etc.)
UofM 12 Month Total Qty (Amount of
these items ordered in the last
12 months)
Current Price
for each item
per UofM
Current Price for each piece in the
UofM (Ex: 12 pencils per box - UofM
divided by 12 to 5th decimal $
0.00005
Total Dollar Spend for each item
12 months (Column F times G)
A 1 Pencil 1 120 $1.00 $ 0.08333 $ 120.00
B 2 Glue 1 11 2.33 $ - $ -
C 3 Pen 1 103 1.13 $ - $ -
D 4 Stapler 1 7 7.99 $ - $ -
E 5 Desk 1 15 149.99 $ - $ -
F 6 Lamp 1 23 23.99 $ - $ -
G 7 Paper 10 153 45.99 $ - $ -
H 8 Toner 4 237 44.99 $ - $ -
I 9 Paper Clips 8 155 11.00 $ - $ -
Total $ 0.08333 $ 120.00

4. 4 www.ATSProcurementGroup.com.
©Above the Standard Procurement Group®, Inc.
Step 7 – Bid/Proposal Receipt and
Evaluation
We will receive the bids/proposals and rate and rank
them according to the criteria outlined in the RFP
SOW letter, Your Organization Best Value, cost, and
anything else that you have placed in the process. We
may go through one, two, three, or more negotiations
of your finalists. In other words, we might include
twelve vendors in the bid process and only have seven
proposals come back to us. The general rule of thumb
is to have three finalists for us to review for a final
winner for best value/best price.
Step 8 – Winning Vendor Selected
You will select the vendor from the finalist, and Above
the Standard will notify the winner, as well as those
who did not win. You will then sign a contract with
the awarded vendor, and your company’s new lower
pricing for the selected goods and/or services will be
effective for the term of the contract agreed to be-
tween you and the selected vendor.
Step 9 – Contract Signed and
Implemented
The new contract is implemented with the winning
vendor providing the outlined expectations of the RFP
SOW letter is met with the proposal that has been
submitted by the winning vendor.
The old pricing versus the new pricing is outlined in
the RFP with the selected winning bidder is outlined
for cost savings, along with the contract signed. An
example of one of our clients (listed below) shows the
bottom line result of more than 1,000 office supply
items.
Keep in mind that their goals were not just price, but
efficiency, fewer invoices, additional in-company con-
trol over purchases, online authorization for all pur-
chases, 24-hour delivery, training, reporting, green,
etc. Also, the more than 1,000 items are not listed
below, because this would take up many pages.
Previous Vendor versus New Winning
Vendor Example
Explanation of the table for old pricing versus new
pricing as outlined from page eight through page ten:
The columns on the left side (A-G) show the original
item this company purchased over a 12 month period
of time from multiple vendors. The columns on the
right (H-K) show the winning vendor from the pro-
curement cost reduction process. Column L shows
the percentage savings for each item. The end result
shows: The annual spend for office supplies for these
items was $338,233 (total is at the end of column G).
After the procurement cost reduction process, the
winning vendor annual contract was $184,725 (total
is at the end of column K). The client is now saving
$153,508 annualized savings on these office supply
items (total is at the end of column K), a 45% overall
reduction (total is at the end of column L).

5. 5
Do not use or reproduce without written permission from Ted Landgraf/Above the Standard Procurement Group®, Inc.
Ten Steps to Cost Reduction
Previous Price New Contract Price
Your Item
# (A)
Mfg /
SKU #
(B)
Item Description (C) Brand
Name (3M,
Staples,
Etc.) (D)
12
Mo.
Total
Qty
(Amt
order
last 12
Mo.)
(E)
Cur-
rent
Price
each
item /
UofM
(F)
Total
Dollar
Spend
for 12
Mo.
(Col-
umn F
times
G) (G)
12
Mo.
Total
Qty
(Amt
dered
in last
12
Mo.)
(H)
Your
Item #
(I)
Pro-
posed
Pric-
ing
for
this
RFP
(J)
Total
Dollar
Spend for
12 Mo.
(Column
F times G)
(K)
Per-
cent
(L)
AFLFT100BX FT100BX TISSUE,FACIAL,8”X8” Afflink 180 $ 0.95 $ 171.00 180 603985 $0.43 $ 77.40 55%
GBC3200716 3200716 POUCH,LAM,LTR SZ,5ML,CL GBC 2 $ 59.49 $ 118.98 2 392217 $21.91 $ 43.82 63%
HUMBINDER-
CLIPL
BINDERCLIPL CLIP, BINDER, LARGE, 1” CAP Hummel’s Office
Products
24 $ 2.49 $ 59.76 24 831610 $1.16 $ 27.84 53%
LOP15502 15502 PEN,BALLPT,ECON,MED,RD,12/PK Legacy Office
Products
60 $ 0.99 $ 59.40 60 466963 $0.55 $ 33.00 44%
LOP15800 15800 PENCILS,#2 WOOD CASE,12PK Legacy Office
Products
36 $ 0.75 $ 27.00 36 476919 $0.35 $ 12.60 53%
PAP12132 12132 PENCIL,#2,AMERICAN Papermate 324 $ 0.69 $ 223.56 324 476919 $0.35 $ 113.40 49%
SAN1738519 1738519 MARKER,SHARPIE,GRIP O/S,BK Sanford 1 $ 15.49 $ 15.49 1 756014 $10.00 $ 10.00 35%
AAGR1700 R1700 BASE,CALENDAR,F/E717-50 At A Glance 4 $ 4.94 $ 19.76 4 651554 $2.24 $ 8.96 55%
ABFTC1182 TC1182 BOOK,RECEIPT,MONEY/RENT Adams Business
Forms
3 $ 8.19 $ 24.57 3 306647 $3.46 $ 10.38 58%
ACM10702 10702 RULER,HARDWOOD,12” Acme 144 $ 0.39 $ 56.16 144 477829 $0.11 $ 15.84 72%
AVE03301 03301 BINDER,3RG,ECON,1”,BLK Avery 252 $ 1.28 $ 322.56 252 321653 $0.80 $ 201.60 38%
AVE07888 07888 MARKER,PERM,CHISELTP,REG,BK Avery 12 $ 0.99 $ 11.88 12 592402 $0.41 $ 4.92 59%
BLKBE10600004 BE10600004 PROTECTOR,SURGE,6 OUTLET Belkin 12 $ 13.49 $ 161.88 12 806264 $6.88 $ 82.56 49%
BRTLC41BK LC41BK LC41BK: BLACK INK CARTRIDGE FO Brother 4 $ 23.49 $ 93.96 4 569014 $15.74 $ 62.96 33%
BRTTZS231 TZS231 TAPE,INDUST,1/2” Brother 2 $ 19.34 $ 38.68 2 477238 $9.45 $ 18.90 51%
CLBMRP6211 MRP6211 CRTDG,INK,P BOWES,621-1,FL3
Color Laboratories,
LLC
3 $ 69.99 $ 209.97 3
CLBM-
RP6211
$51.00 $ 153.00 27%
HEWC5011D C5011D CARTRIDGE,INK,HP,14,BK Hewlett Packard 14 $ 23.47 $ 328.58 14 474822 $20.32 $ 284.48 13%
HEWC5011DN C5011DN INK,HP,OFFICEJET 7110 Hewlett Packard 1 $ 23.47 $ 23.47 1 474822 $20.32 $ 20.32 13%
HEWC6578DN C6578DN CRTDG,INKJET,TRICOLOR,STD Hewlett Packard 8 $ 33.97 $ 271.76 8 392486 $30.90 $ 247.20 9%
HEWC7115A C7115A
HP 15A PRINTER TONER CAR-
TRIDGE
Hewlett Packard 2 $ 63.25 $ 126.50 2 452823 $53.83 $ 107.66 15%
HEWC8727AN C8727AN CARTRIDGE,PRINT,IJ,HP27,BLACK Hewlett Packard 10 $ 19.24 $ 192.40 10 491205 $16.40 $ 164.00 15%
HEWC8730WN C8730WN CARTRIDGE,INK,HP 02XL,CYN Hewlett Packard 2 $ 18.50 $ 37.00 2 814068 $12.60 $ 25.20 32%
HEWC8731WN C8731WN CARTRIDGE,INK,HP 02XL,MA Hewlett Packard 2 $ 16.59 $ 33.18 2 814069 $12.60 $ 25.20 24%
HEWC8732WN C8732WN CARTRIDGE,INK,HP 02XL,YW Hewlett Packard 2 $ 18.50 $ 37.00 2 814067 $12.60 $ 25.20 32%
HEWC9352AN C9352AN HP 22 TRICOLOR US INKJET PRINT Hewlett Packard 6 $ 19.35 $ 116.10 6 603401 $15.89 $ 95.34 18%
HEWC9361WN C9361WN CRTDG,INK,HP 93,TRI-COLOR Hewlett Packard 4 $ 23.22 $ 92.88 4 606326 $19.07 $ 76.28 18%
HEWC9364WN C9364WN HP 98 BLACK INKJET CARTRIDGE U Hewlett Packard 30 $ 23.99 $ 719.70 30 617545 $19.32 $ 579.60 19%
HEWC9500FN C9500FN HP 02 2-PACK BLACK INK CART Hewlett Packard 2 $ 40.63 $ 81.26 2 610738 $30.45 $ 60.90 25%
HEWCB435A CB435A CARTRIDGE,PRINTER,HPLSRJT Hewlett Packard 5 $ 67.63 $ 338.15 5 712993 $53.53 $ 267.65 21%
HEWCC653AN CC653AN CRTDG,INKJT,BLK,901 Hewlett Packard 12 $ 15.81 $ 189.72 12 731585 $12.38 $ 148.56 22%
HUMTAPEDIS-
PENSER
TAPEDIS-
PENSER
DISPENSER, TAPE, 1” CORE, BLK
Hummel’s Office
Products
20 $ 2.85 $ 57.00 20 130674 $0.80 $ 16.00 72%
LEO74500 74500 ERASER,BOARD,WHITEBOARD Charles Leonard 60 $ 1.00 $ 60.00 60 601738 $0.60 $ 36.00 40%
LOP13217 13217 BOARD,CORK,48X36,WOOD,45106
Legacy Office
Products
9 $ 65.99 $ 593.91 9 518639 $20.77 $ 186.93 69%
LOP13450 13450 CLIPBOARD,9X12-1/2”,BN,01155
Legacy Office
Products
48 $ 0.97 $ 46.56 48 522003 $0.60 $ 28.80 38%
LOP13451 13451 CLIPBOARD,9X15-1/2”,BN,01160
Legacy Office
Products
12 $ 1.39 $ 16.68 12 121715 $1.14 $ 13.68 18%

6. 6 www.ATSProcurementGroup.com.
©Above the Standard Procurement Group®, Inc.
LOP14201 14201 PUNCH,3-HOLE,ADJ,BK,00210
Legacy Office
Products
5 $ 4.99 $ 24.95 5 799809 $2.15 $ 10.75 57%
LOP14205 14205 PUNCH,2-HOLE,HVY/DTY,BK,00200
Legacy Office
Products
12 $ 4.99 $ 59.88 12 799825 $2.00 $ 24.00 60%
LOP16005 16005 TAPE,INVISIBLE,3/4X36YD,2
Legacy Office
Products
216 $ 0.64 $ 138.24 216 495221 $0.40 $ 86.40 38%
LOP21220 21220 BOOK,STENO,GREGG,GN,60SH,
Legacy Office
Products
24 $ 0.89 $ 21.36 24 163485 $0.56 $ 13.44 37%
LOP52010 52010 CRTDG,LASER,LJ1100,C4092A
Legacy Office
Products
3 $ 47.91 $ 143.73 3 791204 $29.97 $ 89.91 37%
LOP52021 52021 CRTDG,LASER,C7115A
Legacy Office
Products
3 $ 53.85 $ 161.55 3 791407 $33.03 $ 99.09 39%
HUM33YW 33YW PAD,NOTE,POST-IT,3X3,YW
Hummel’s Office
Products
192 $ 0.27 $ 51.84 192 486955 $0.14 $ 26.88 48%
HUM35YW 35YW PAD,NOTE,POST-IT,3X5,YW
Hummel’s Office
Products
180 $ 0.48 $ 86.40 180 105825 $0.23 $ 41.40 52%
ALL00700 00700 R/BANDS,BIG,7”X1/8” Alliance 30 $ 1.39 $ 41.70 30 516054 $0.60 $ 18.00 57%
EPSS041649 S041649 PAPER,LETTER,50 SHEETS Epson 3 $ 22.89 $ 68.67 3 489117 $13.04 $ 39.12 43%
GBC3202000 3202000 POUCH,LAM,BUS CD GBC 16 $ 6.92 $ 110.80 16 793745 $0.20 $ 3.20 97%
GBC3747143 3747143 POUCH,ECONOMY LTR SZ 3 MIL GBC 1 $ 74.49 $ 74.49 1 383188 $42.34 $ 42.34 43%
HEWC9322FN C9322FN CRTDG,INK,HP 27 2 PK,BK Hewlett Packard 3 $ 38.99 $ 116.97 3 570648 $30.44 $ 91.32 22%
HEWCC604FN CC604FN CARTRIDGE,CMBPK,HP02,RETAIL Hewlett Packard 4 $ 49.02 $ 196.06 4 674759 $41.44 $ 165.76 15%
LOP10803 10803 CARD,INDEX,3X5,RLD,WE,100/PK,1
Legacy Office
Products
310 $ 1.10 $ 339.90 310 233601 $0.22 $ 68.20 80%
MAX648200 648200 CDR,700MB,80”-100 SPNDL Maxell 2 $ 31.99 $ 63.98 2 561032 $13.70 $ 27.40 57%
MMM859 859 TAPE,MOUNTING,SQ,RMVBL,CL 3M 10 $ 4.49 $ 44.90 10 848044 $1.65 $ 16.50 63%
PAC103590 103590 PAPER,CONST 9X12 50PK,RD Pacon 10 $ 1.88 $ 18.80 10 826160 $1.49 $ 14.90 21%
PACP7209 P7209 PAPER,CNST,9X12,50PK,VT Pacon 10 $ 2.15 $ 21.50 10 601691 $1.49 $ 14.90 31%
DUCB45012 B45012 TAPE,DUCT,1.88”X45YD Duck 12 $ 10.69 $ 128.28 12 $7.35 $ 88.20 31%
18H24E 18H24E HANGING POCKET,LTR,3-1/2” EXP
see item desc
column
2 $37.49 $ 74.98 2 478978 $19.49 $ 38.98 48%
Q5942A Q5942A HP PRINT CTG FOR LJ4250/4350
see item desc
column
1 $151.21 $ 151.21 1 577292 $129.61 $ 129.61 14%
UNV11204 11204
PAPER,XERO/
DUP,20#,LTR,PK(MP2201PK)
UNV 4 $ 4.99 $ 19.96 4 490935 $3.49 $ 13.96 30%
UNV11208 11208 PAPER,XEROX/LASR20#LTR,IY UNV 6 $ 4.99 $ 29.94 6 490950 $3.49 $ 20.94 30%
AVE11906 11906 INDEX,PLST 2 PKT 5TB,AST AVE 2 $ 3.95 $ 7.90 2 476882 $2.30 $ 4.60 42%
Total Dollar Amount Reduced for all items (previous pricing versus new contract pricing, was $ 153,508 per year (a 45% cost reduction)

7. 7
Do not use or reproduce without written permission from Ted Landgraf/Above the Standard Procurement Group®, Inc.
Ten Steps to Cost Reduction
Step 10 – Implementation and Next
Projects
Implementation happens on the specified date with
the selected vendor chosen by you and Your Organiza-
tion, which includes those team members identified
in your organization, and the team members selected
with the winning vendor.
The same process will take place with each area we
have identified by you and Your Organization. De-
pending on organization need, resources, and chang-
es, the plan for bidding, projects, and procurement
may change with new areas and/or certain projects
deleted. Keep in mind that as we conduct each area
of procurement cost reduction, opportunities will
open up for efficiency, soft cost avoidance, productiv-
ity maximization, and other areas that relate to bot-
tom line and business growth.
Summary
Many companies conduct what we call cost reduction
where they sign an agreement for a specified percent-
age off of business pricing or a percentage above their
cost, but they really do not know what pricing, sav-
ings, and best value they are REALLY getting. Why?
There is nothing to gauge previous pricing versus new
pricing for all items. In other words, a lot of bids are
conducted with 30 to 50 of the most utilized core
items, whereas many companies purchase hundreds
to thousands of items in the office supply spend area
alone.
Cost Reduction versus Procurement
Cost Reduction
The difference between both cost reduction and the
RFP procurement cost reduction process is different.
Procurement cost reduction has greater benefits in all
areas. See the table below.

8. 8 www.ATSProcurementGroup.com.
©Above the Standard Procurement Group®, Inc.
Cost Reduction Outcome Procurement Cost Reduction Outcome
20% off of business pricing. How do you know what you are
paying for the future pricing?
• Create Master List of all items purchased over a specified period of time.
• Create the pricing and benchmark.
• Request for Proposal (RFP)/Bid and include all items, services, and related areas.
• New winning bidder is engaged with Master List of items included in the contract.
• Procurement Cost Reduction / RFP conducted once per year, or on a scheduled basis
as determined by your organization.
• Conduct Procurement Cost Reduction through RFP process.
Catalog pricing. Do you have an analyst review
each item as you buy it?
• Some of the Results of Procurement Cost Reduction:
• Spend more time up front to create bid.
• Will only have to bid this area once every year or two.
• Save’s time, money, improves efficiency, and streamlines processes.
• Procurement or staff person does not have to go to bid on this every week (at most
once every year).
• Lowest price.
• Can include in contract that items outside of all that has been purchased in the past
be included at the same cost reduction (cost percentage above their wholesale cost)
in the future.
• Can customize bid to be able to order online, integrate with your procurement
system, control what is purchased, see trends, know what you need in inventory,
plan, forecast, etc.
• Less time overall.
• More efficient.
• More benefits.
• Improved time management.
• Bid out at a minimum of once every 6 months to one year, two year, or more.
• One to two vendors are chosen meaning less PO’s, Invoices, and paperwork.
Request for Quote (RFQ) specific
to items during that month
Example: Office Supplies RFQ
sent out to 3 vendors for of-
fice supplies in the amount of
$10,000).
This is very labor intensive and
does not provide total spend and
buying amount to vendor.
Buy from multiple vendors,
meaning more Purchase Order’s,
Invoices, and Shipping / Receiv-
ing Documents (not cost effective
from both cost and labor).
The RFQ does not take into ac-
count that the companies spend
is $200,000 per yea. The RFQ
for $10,000 that month was sent
out and the company will only
get pricing based on $10,000, not
$200,000.
• Summary Benefits of Procurement Outsourcing & Cost Reduction:
• Reduced costs and increase quality;
• Centralized procurement;
• Provide needed goods and/or services;
• New market development;
• Just-In-Time Inventory (JIT);
• Increased supply chain efficiency;
• Best value and remain competitive;
• Government compliance;
• Supplier performance improvement;
• Support day-to-day buying activity;
• Policy/Procedure creation, implementation, validation;
• Transaction automation and processing;
• Focus to core competencies;
• Strong end-user to provider relationship developed;
• Lower procurement related labor costs;
• Overall procurement performance improved;
• Greater control, reporting, and vendor compliance;
• Organization and internal cost performance;
• Data for benchmark analysis, goals, and results;
• Procurement personnel training;
• Hedges future increase of raw materials; and
• Procurement department creation and implementation.
Your Bottom Line
There are many other things we could highlight about why Procurement Outsourcing and the Procurement
Cost Reduction RFP process as compared to cost reduction is better on all points.
They far outweigh just cost reduction, because it is not only about price, but time, labor, vendor relation-
ships, compliance, returns, customer service, staff knowing how to order, control over what is ordered for cost
control, invoicing and purchase order efficiency, compliance, measurable performances, vendor management,
relationship development, efficiency not only in the purchasing department but also within departments (pur-
chasing effects everyone!), budgeting, cost reduction, the goals and needs of your organization, and so many
other areas.
Email: Mikoriordan@gmail.com