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For more information contact: Doug Cash ATI Cost Reduction & Profit Recovery Services |
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ATI
Cost
Reduction & Profit Recovery
Services
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The ATI COMMUNICATOR 30th edition Feb-March 2005 |
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Saving money, reducing costs, and obtaining credits and refunds is a tedious process requiring three things: FOLLOW UP! FOLLOW UP! FOLLOW UP! Contacting vendors on billing errors and required adjustments is only the beginning. All requests must be supported by source documentation and simple to read spread sheets. Requests can take as many at 50 vendor contacts until completed. |
REDUCE COSTS THROUGH AN RFP PROCESS
Requests For Proposal (RFP) and Requests For Quote (RFQ) are common ways to improve service and reduce costs.
The creation of the RFP and/or RFQ process can be simple or complex depending on the way the "Request" is prepared.
The skill in developing RFP/RFQ's is in presenting the questions in a format that is easily understood. Comparisons of information must be simple and understandable. All unnecessary information should be in attachments that are only used for reference.
All proposals should have as few questions as possible with brief answers as a requirement.
Pricing supplied by vendors should be simple and understandable.
All "Requests" should make it very clear that large volumes of information is a negative and that only relevant information should be supplied by the responder.
Comparisons should be easy to develop while eliminating complex responses that are too difficult to understand.
NEGOTIATING TIPS AND TRICKS
If negotiations are being conducted at the wrong level the results will not only be frustrating but maximum savings will not be achieved.
Make sure that the party to the cost savings negotiations has the authority to make decisions on his/her companies behalf. Also, make sure that there is some incentive to increase savings.
The old adage "knowledge is power" applies to this process. Always have options even if you prefer not to implement.
Demands for reducing costs should be precise and based on information collected during the research process.
Work with your vendor by explaining your need for cost savings and ask if they understand your position. Then enlist their help in working to find ways to reduce costs.
Threatening and aggressive comments only force the other side to defensively protect their position.
PROBLEM
Costs continue to increase while profits shrink. One of the best ways to reduce costs is to make sure the billing received matches agreements, contracts and current charges.
As computers have taken over the printing process and billing systems have increased in complexity, it has become a full time job just to try to understand the billing systems established by large companies.
SOLUTION
Keeping contract compliance and bill review in house without allocating enough staff time may prove costly. Outsourcing this process seems to be a viable solution especially if the charge for this service is based only on a contingent fee formula where no savings is achieved no fee is incurred.
THE ATI PROGRAM
OUR PROMISE TO YOU: "Our charges are based on savings: no savings, no fee is due. Implementation & Validation are a major part of the ATI cost reduction program. Almost all cost reduction services are done off site. The time and energy involved by the business is very limited. Our experienced staff makes recommendations that enables cost savings without disruptions. We work exclusively for you and your best interests."
We hope you will look forward to the Communicator and would appreciate any feedback that you would like to provide.
Please email comments to dc@auditbills.com
ATI Cost Reduction & Profit Recovery Services
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