ERC franchisees work with companies who perceive value in outsourcing varying levels of their purchasing and administrative responsibilities. The goal of Expense Reduction services is to free up their client's purchasing professionals, enabling them to focus on their strategic or direct spend categories. Our franchisees target the non-strategic and consumable expense categories that were mutually agreed upon and utilize our 7 step process, "ERC's Road Map to Cost Savings".
Negotiating long-term savings is the result of a number of factors:
First, the introduction of a third party into the purchasing process can cause suppliers to seriously reevaluate their current pricing structure.
Second, since franchisees work with more than one client at a time and in many cases with the same expense categories, they are better able to determine what the market will bear.
Third, franchisees have access to a Knowledge Base that collects key information on most expense categories. This, coupled with the Best Practices information gathered by ERC, provides our franchisees with real time data, which can enable them to more easily negotiate favorable pricing and terms for their clients.
Fourth, franchisees utilize a customized process that is usually reserved for strategic or direct spend categories with significantly larger spends.
Fifth, franchisees are motivated as a result of their compensation structure to take the time needed to follow our process thoroughly.
Sixth, they ask the tough questions!
Expense Reduction services generally proceed in the following manner:
- determine which expense categories might benefit from a purchasing review
- develop an understanding of current and future needs and parameters relating to suppliers and products/services needed
- begin "ERC's Road Map to Cost Savings" 7 step process
- present recommendations
- implement recommendations
- begin saving
- monthly and quarterly reviews
- quarterly documentation of savings and invoicing
- ongoing client support
Client involvement in the process is generally minimal and most work is done offsite.
