INSIGHTS FROM OUR EXPERT
Case Study - Telecom
The pharmaceutical services sector is rife with challenges, from increased competition and counterfeit products to legal liability and product efficacy concerns. There is no shortage of issues that foster the full attention from executive leadership. With such a vast array of departments that demand attention, more often than not, the cost savings element pertaining to operating expense efficiency is left behind. However, after three consecutive quarters of revenue decline, this client found themselves seeking an efficient and innovative way to cut costs.
The total savings generated from benchmarking 12 months of their general ledger against our data lake reflected $135,345. Our analysis uncovered 37 total vendors whose prices were greater than competitive norms. This number exceeded initial expectations and set the foundation for specific savings goal to be attained with full transparency.
The decision to work with Optimally was driven by the volume of our data. The ability to benchmark their operating expenses against our $6 Trillion worth of vendor invoices from over 10 million companies offered the credibility they were seeking in an evidence-based solution.
Not only were we successful in negotiating the lower price, we also locked in rates that will not increase with the addition of lines or same services for new employees. We monitor compliance of all new rates monthly for our client and are able to quickly notify and act on any discrepancy real-time. Our platform (specifically our machine learning algorithms) continues to aggregate and calculate new benchmarked rates for ongoing renegotiation that drive costs lower as artificial intelligence continues to learn.
The ability to benchmark vendor rates across an entire general ledger identifies the savings gap for every vendor and expense category. Our platform is industry agnostic and offers savings across all vendor types. The worst-case scenario in benchmarking your general ledger is learning that all of your rates are best in class. However, we are still waiting to benchmark a general ledger that reflects such perfection.
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