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New York,[link widoczny dla zalogowanych], NY, June 04, 2007-- According to a 1st Qtr. 2007 survey by B2X Corp., the world’s largest online trading platform, nearly 41% of wholesale and retail executives surveyed reported being “interested” or “very interested” in finding Chinese sources for their product if the delivery and quality of goods were guaranteed. Many said that they did not have the time, internal resources or experience to manage the import process. Procurement Analytics,[link widoczny dla zalogowanych], a New York based Strategic Spend Reduction consulting firm that specializes in Asian outsourcing,[link widoczny dla zalogowanych], provides contractual savings guarantees to their clients up-front in addition to managing the entire international outsourcing process from clearly defining specs, to reviewing samples, maintaining quality control, coordinating on-time deliveries and incorporating Service Level Agreement standards.
Utilizing a vast Asian supplier base, Procurement Analytics has also developed a new methodology for significantly reducing large quantity commodity corporate Spends and at no cost to the client. Employing a zero-based Spend Analysis, consolidation strategies, value engineering, and strong, 20-plus years of experience negotiating vendor contracts, Procurement Analytics’ fees are derived as a percentage of savings only that are then paid by the supplier side, not from the client. If there are no savings to be found through the Spend Analysis, there are absolutely no fees to be paid.
“I believe that there are so many unidentified savings opportunities hidden in what corporations believe are strong vendor contracts,” said Robert Santoli, president of Procurement Analytics, “that my company initially prepares a detailed Spend Analysis at no cost based on a review of client selected commodity Purchase Orders. We establish ‘real’ benchmarks and use ‘apples-to-apples’ specs and negotiate new pricing based on the same or better quality levels.” When Procurement Analytics gets the approval to move forward and realize those savings for the company, the figures are contractually guaranteed either from new Asian suppliers or re-negotiated with current Asian suppliers.
Procurement Analytics experience in cost savings covers a broad scope of commodities, including print services, manufactured parts, office furniture, travel costs, plastics, food services and more. “There is almost no category where savings can’t be found,” said Santoli. “And our expertise and vast supplier network not only extends to Asia but to every corner of the globe.” Procurement Analytics current client list includes New York University, Ergotech Group Inc., Spirit Brands,[link widoczny dla zalogowanych], Stony Brook University, Del Labs and Montefiore Hospital, among others.
Santoli’s background in outsourcing and procurement is solidly based in 20-plus years in executive level positions on the corporate side, having developed cost savings Spend Programs in such global companies as InBev USA and Diageo. “From many years on the inside of companies, I understand the corporate structure and how Spend Management can become complacent,” he said. “Often businesses use the same vendor for many years. While there may be a long-time relationships there, it doesn’t mean that the client company is getting the best prices. It’s the easy route but not necessarily the best one. At the same time, management personnel are often spread very thin and don’t have the time to take a deep-dive into a Spend Analysis, which we do for free.”
The Procurement Analytics benefits for client are impressive; savings – and lots of it – for the same commodities, plus elimination of maverick buying with a reduced structured vendor base, reduction of internal administration, more time to devote to the core business, more precise future decision-making, one central point of contact for Spend Management, savings defined by approved benchmarks, and most importantly, fees based on percentage of savings only and paid from the supplier side. Santoli’s methodologies were recently featured in a full-page article, “When Point of Sale Equals Point of Savings” in Supply & Demand Chain Executive Magazine.
“My company’s methodologies are based on a win-win fee based strategy,[link widoczny dla zalogowanych],” said Santoli. “It works well for the client and the suppliers and it makes Procurement Analytics accountable for every penny it saves a company.”