How We Charge

We are able to offer you two alternative methods on how we recover our fees to suit your specific requirements and preferences.

Shared Approach

This is related to a short-term business relationship purely designed to generate cost reductions. Once the savings have been introduced the responsibility to manage the suppliers is returned back to the client.

We bill on a contingency basis for this service therefore in the unlikely occurrence that we were unable to identify any cost savings on a particular commodity you would NOT incur any charges for our consultancy services in that area of the investigation.

Where we are able to present cost reductions our fees constitute 50% of the cost savings identified in the “relevant period”, which in the majority of cases is a period of 12-months following the submission of our results. We can clearly demonstrate that our billing method means that you only pay against the cost savings you actually achieve as apposed to other consultants that insist on payment against theoretical cost reductions.

Managed Approach

Once the savings have been introduced we would continue to manage the suppliers & commodities where we were able to introduce cost reduction. This would ensure the suppliers continue to perform to expectations and savings are maximised by following our recommendations.

We would re-tender / re-negotiate all of the agreements that we introduced to minimise any future cost pressures. In addition, we would also continue to search for additional cost reduction by periodically researching the supply chain and by looking at alternative products and manufacturing processes. In summary, we would provide you with a professional purchasing service on an on-going basis.

This approach allows you to retain 100% of the savings that we identify.

In return, we would expect to be able to obtain a commission from the successful suppliers. The details of this commission would be contained within our initial proposal and the whole process would be totally transparent.

We would only look to obtain a commission payment on the commodities were we able to introduce cost savings. There would be no fees due from the client or the suppliers against the commodities were we are unable to identify any savings.

We would require a minimum contract of 2-years duration for this option. This is to allow us to obtain a decent return for our investment and to give us time to explore the alternative products and processes mentioned above.