The Bottom Line

Continuous Improvement: Procurement Strategies for Untapped Savings

Posted by Jim Kurtz on Sep 10, 2015 9:00:00 AM

 

Every day, companies spend millions to hire professional firms for advisory services.

CPAs audit financial statements, compliance officers ensure companies keep up with latest legislation (USDA, FDA, NHTSA, UL/CSA, etc.), and management consultants instill best practices for process efficiency.

And while all of these serve needful purposes, in the macro view of expenses, each only comprises a small incremental cost.

In contrast to these costs, procurement in manufacturing may account for as much as 70 percent of overall expenses. Any change in spending has tremendous impact on the bottom line, but this is often overlooked.

What if there was a way to cut these expenses by 15 to 25 percent at no cost? And without changing existing suppliers? And with no operational disruption?

Skeptics and late adopters might respond, “We’re fine as we are,” or “We’re too busy,” or “Don’t we have internal resources for this already?”

But improving the bottom line should always be a priority, and SRM can help achieve this.

Since the economic recession, margins have decreased and companies have become leaner. Managers now wear multiple hats and are held accountable to greater responsibilities. As a result, their job functions have become more tactical, while less time is spent developing long-term supply chain strategies.

What makes SRM stand out?

Facts and figures.

For every million dollars spent, SRM typically finds $150,000 in savings for clients.

SRM has completed nearly 5,500 successful client projects, delivering an average savings of 15 to 25 percent over a 23-year history. This equates to billions added to our clients’ bottom lines.

In fact, SRM is so confident of finding you savings that an initial cost-savings assessment will be conducted at no cost or obligation.

Facts about SRM:

-SRM has a seasoned staff of professionals who can quickly perform baseline assessments of procurement categories from administrative, raw materials, and indirect spend.

-SRM is vendor-neutral and completely independent. SRM is impartial to any particular vendors, and able to provide honest, objective reviews of your spend along with recommendations to ensure best-in-class pricing.

-SRM has an extensive database of the most current pricing benchmarks, the ability to assign resources immediately, and delivers greater savings in a fraction of the time.

-SRM is only compensated as a percentage of the actual hard dollar savings received by its clients, with no hourly fees or retainers.

Is SRM the right fit for your company? SRM’s process is fully scalable, serving small cap through large multi-national corporations.

After a few minutes of your time and a handful of data points, SRM will provide the results of a no-cost initial assessment of your expenses.

The economic climate is always changing, but one thing is for sure: SRM has its finger on the pulse of the market. Now is the time to evaluate your company’s greatest opportunity to reduce expenses.

Jim Kurtz is Executive Vice President of Business Development at Strategic Resource Management Inc. – a professional services firm offering cost reduction strategies to the manufacturing and retail industries. During his 30 year career, Jim has been involved in multiple large scale business development ventures worldwide. He specializes in contract negotiation, supply chain management, and long-term strategy. To schedule a time to meet with Jim, email jkurtz@srmcorp.com. Learn more about SRM at www.srmcorp.com, call us at 1- 800-748-2577, or follow our page on LinkedIn.

Topics: Manufacturing