The Changing Economy has forced all businesses, government agencies, schools, non-profits, hospitals and other enterprises to focus on reducing costs and increasing revenue.  As staff is reduced and vendor relationships become more complex it has become clear that using cost reduction professionals can increase the bottom line.

ATI is completing the best year in its history and is proud of the fact that ATI is now involved in projects from major corporations, non-profits, government work, schools, cities, hospitals, auto suppliers and many other types of clients.

This cross industry experience has enabled ATI to grow its data base of information as to what costs, charges, contract clauses, and other relevant information which has enabled ATI to maximize our clients savings.

 

SOME OF  ATI'S TIPS AND TRICKS!

Inventory of Services.

The first step in the process is to inventory all services and to obtain copies of the current agreements with the vendor(s).  The information must be keyed into a tracking data base so that following up will become automatic.

A specific example of what can be accomplished by organizing the inventory happened when ATI called 38,000 phone lines and found over 132 lines that were being paid for by the ATI client and yet were for people's phone service that had nothing to do with the business.  In addition, over 10% of the phone lines were not be used.  The savings exceeded over $600,000/year.

Contract Compliance.

As agreements with vendors become more complex, reading and interpreting the fine print has become very difficult for the busy staff member.  This explains why a professional may be a better option on these types of projects.

Follow up..

In order to stay on top of these type of projects it is essential that the data base of information is updated every time a new contract, service or item is ordered.  Also, comments must be keyed in and tracked such as the quality of the vendor/service.  This will enable future negotiations to take into consideration influencing factors such as quality of work and/or quality of the service.

 Tricks to negotiating a new agreement.

• Don't be pressured to make an immediate decision.

• Make sure you understand the quantity and quality of what you are purchasing.

• Make sure that you have extensive knowledge of the product and/or service you are buying.

• Understand the fine print of the agreements and pay special attention to the fine print on the reverse side of the agreement.

• Make sure you have had at least three quotes from other suppliers.

• Let the supplier know that you are getting other quotes.

• Ask the potential supplier to reduce the price.

• Before signing the final document make it clear that an additional discount will enable you to get the contract signed within the week.

• An effective technique is have a another party come in at the final negotiation session and insist that the pricing is reduced before final signatures will be obtained.

• Never negotiate if you are tired and/or hungry.  Make sure you keep the advantage in your favor.

Difficulties with Cost Reduction Processes.

Keeping up with information, data, ordering and recalling vendor/suppliers on a regular basis is time consuming process and difficult at best.  Without focused attention and constant follow up time moves very quickly and savings opportunity are almost always missed.  Automatic renewals, expired contracts, unneeded services continue to cost money.

The only way to organize this volume of data is through data bases that track and remind us to follow up.  This only works if we are diligent in updating the information.

ATI has developed many cost reduction services that will  find money that you did not know was available.  In addition, the electronic systems and custom data mining procedures will enable you to establish contract compliance processes that will contain costs.

ATI's cross industry experiences over 15 years has enabled ATI to save its client's over $50,000,000 and to become a leader in cost reduction and profit recovery services.  Our programs are based on contingent fees that enable our clients to save money without having to budget for the ATI services.  Our unconditional promise to you "no savings no fees are due ATI."  Please call us for additional information that will enable you to substantially reduce your costs at no risk to you.

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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