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
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.
Achieving savings for our clients from their current vendors is what makes working with us easy. This is accomplished through the value of a full professional negotiations team with limitless ability to renegotiate any volume of agreements. In this client engagement, our negotiation target is 45 vendors during the first year. Instead of having us engage all vendors month one, we worked with the client to approach 10 per month. There is a plan in place to bring some new vendors onboard as school draws to a close that we will be benchmarking throughout the summer. As of today, our client is in month 2 of negotiations. See below for the results over the past 60 days.
$105,578 annual savings for an educational institute from savings in Supplies, Utilities and Insurance.
$1,010,975 annual savings for a construction company from savings in Supplies, Equipment, Utilities and Telecommunications
$135,345 annual savings for a telecom company