INSIGHTS FROM OUR EXPERT
Case Study – Construction
An exponential increase in recent housing demand has been great news for many residential construction companies! However, good news often times comes with unknown challenges. In this case our client found themselves scaling so rapidly that all efforts shifted to increasing project management tools, human capital and new supplies/materials. With the market demand showing no signs of slowing, coupled with the increase in material costs, the executive team found themselves needing a savings strategy. So, what does a company with no time, personnel, or ability to execute a savings strategy do?
The solution provided filled all of their savings needs while maximizing the savings opportunity that no alternative provided. With no up-front costs/fees and minimal time commitment we take the most comprehensive; risk free approach to providing savings through technology.
Running the general ledger through the data generated their total annual savings targets. The proprietary algorithms provided evidence-backed vendor pricing benchmarks reflecting the savings gap between their current pricing versus the best-in-class pricing from the same vendors. The total savings generated exceeded expectations and made the decision to move forward simple. Here are the Result
Largest Savings Categories:
Supplies, Equipment, Utilities, Telecommunications
Moving forward we began with a one-hour onboarding call for us to get started on negotiations. During this call, our client success team will capture all client special relationships (vendors that we are not to renegotiate due to personal relationships), automation of invoices for review (for savings insight) and planning the first round of vendor negotiations. At month’s end, Our client success team reviews the new agreements set in place and savings achieved, negotiations in progress, all upcoming negotiations, and more. This meeting repeats monthly and only takes around 30 minutes. This solution and process works perfect for clients who seek minimal time commitment for maximum savings.
Renegotiating agreements is how savings are achieved for our clients. The benefit we provide is a full negotiations team with unlimited capacity in the volume of vendor negotiations. In this client engagement our renegotiation target is 125 vendors, and although we are prepared to engage all vendors day one, our client preferred we negotiate savings in smaller batches month over month. third month of vendor negotiations and have successfully engaged with 24 vendors. Here are the savings results to date:
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