The Boston Consultant Group concludes that a 5% reduction in procurement costs is the bottom line equivalent to increasing sales by 30%.
CRS’s Impact
HOW CRS CAN IMPROVE YOUR COMPANY’S BOTTOM LINE.
Cost Reduction Specialists is committed to profit improvement for our clients.
One of our first steps is to conduct a thorough spend analysis to create a baseline and roadmap for targeting cost reduction opportunities. Spend is then categorized as direct and indirect expenses, and categories are ranked by the savings potential, complexity, internal impact on your organization and competitive options within the supplier marketplace.
Once this spend diagnostic is complete, Cost Reduction Specialists, will prioritize which areas should be targeted first. Sometimes market conditions or business cycles require some adjustments to the timing of these projects.
In developing your spend analysis, we compile all costs associated with a product or service so that we can determine the true Total Cost of Procurement. This includes the price of the actual product/ service as well as payment terms, inventory investment (if any), freight expenses, internal processes, rebates, and the ease or difficulty of doing business with the current supplier.
Our objective is to generate a long term positive financial result for you in as short of time-frame as possible while optimizing service, quality and customer satisfaction. By rolling up our sleeves and doing the critical detailed research, supplier interviews, value analysis, process mapping and strategic sourcing we maximally leverage the opportunity and its potential with “best in class” suppliers resulting in real $ubstantive $avings for our clients.
CRS Provides:
- 50+ Years of Procurement and Supply Chain Expertise including Strategic Negotiation Skills and Contract Management
- In-Depth Expense Analysis
- Comprehensive Value Analysis
- Process Review and Improvement
- Substantial and Responsible Cost Savings
- Diverse Market, Product and Service Knowledge
- On-going Strategies for Managing Costs and Optimizing Spend
- Risk-Free, Gain Sharing Approach which Ties Our Fee to Actual Savings
Did You Know!
CRS offers its services on a contingency basis, with our fee tied to the savings secured and approved by the client.
CRS focuses on reducing the Total Cost of Procurement (TCOP) while maximizing value with key suppliers. This includes negotiating improvements in quality, services, performance requirements, terms, incentives & price change methodology.
CRS will manage all information with utmost respect and confidentiality.
CRS can develop and facilitate Reverse Auctions and complex RFQs, RFPs, RFXs and RFIs.
CEO of a film manufacturer said “What appealed to me initially was that CRS’s offered expertise in procurement and supply chain on a performance basis - contingent on results, with no risk. Within 6 months CRS provided savings in excess of $1 million".
CRS has assisted various manufacturers and distributor organizations in the food, packaging, spirits, electronics, computer, cosmetic, furniture, metals, services & construction industries to reduce their costs & increase savings.
“Cost Reduction Specialists were very easy to work with and helped us achieve savings in many areas including telecom costs, credit card processing fees, office supplies, distribution supplies and other indirect costs”- Controller Furniture Business
“CRS negotiated significantly lower prices for our temporary labor, labels and corrugated cartons programs resulting in savings that exceeded $400,000”. VP of Finance – Food Processing Organization
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