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| It is difficult for many purchasing organizations to obtain the best price. Often they do not know the entire spend in a category for their organization, nor do they have the expertise or benchmark data needed to get the best price. |
Expense Reduction Corporation has saved the State of Iowa over $3.5MM by re-negotiating contracts and healthcare-related savings from audits.
How we are compensated?
Although we can do consultative project work on an hourly fee basis, we prefer to have our fees be entirely performance-based. Our fee is a percentage of the savings achieved from a mutually agreed-upon baseline which is established up front. |
| Unlike other companies, we do not charge a fee for up-front research on a performance-based engagement. For example, you may ask us to look at your company expenditures in the area of temporary services. We would ask you for certain data that we need to determine if there is any opportunity for additional savings. Upon review of this data and additional research on our part, we would present a proposal to you if we believed that there was an opportunity for additional savings. This proposal would outline our strategy to achieve the additional savings, our proposed "baseline" upon which our fees are based, and the percentage of savings that would be our fee. If we did not believe that there was an opportunity for additional savings in this category, we would communicate this to you and not offer a proposal. There is NO FEE for this upfront work on our part. The only fee that is payable, is when we achieve savings from the agreed-upon baseline after you accept our proposal. |
We also offer a low cost, highly value-added assessment of your current organization's purchasing practices. We will review your negotiation processes, the skill sets of your staff, your organizational buy-in, your intradepartmental workflow processes, your methodologies, and your organizational structure. We will identify where you are using best practices, and where you can improve. We will offer concrete, actionable recommendations for improvement that will increase the value of your purchasing organization.
Purchasing Assessment
We also offer a low cost, highly value-added assessment of your current organization's purchasing practices. We will review your negotiation processes, the skill sets of your staff, your organizational buy-in, your intradepartmental workflow processes, your methodologies, and your organizational structure. We will identify where you are using best practices, and where you can improve. We will offer concrete, actionable recommendations for improvement that will increase the value of your purchasing organization.
D&B D-U-N-S# 119116437
Expense Reduction Corporation is a registered federal contractor with the Central Contractor Registration. Expense Reduction Corporation is a registered contractor with the State of Iowa and has performed services for the State of Iowa.
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