For more information contact:

Doug Cash

(248) 432-4444  Ext: 203

ATI Cost Reduction & Profit Recovery Services
 

5777 W. Maple Ste: 135
W. Bloomfield, MI 48322
Phone (248) 432-4444
Web Site: http://www.auditbills.com/

 

The ATI COMMUNICATOR

Nov-Dec 2006 43rd Edition

The Big Three are suffering from the most dramatic changes in their history.  Will it get better or are we going to have several more years of severe pain while the economy and especially the Big Three try to survive.

"The old ways of doing business are either dead or dying fast.  In order for business to survive dramatic changes are essential."

Reduce costs is a great way to start and use the monthly savings to support the IT upgrades essential for you to remain competitive?  IF the project is financed the monthly savings should be able to support most, if not all of the monthly payments needed to repay the lease/loan.

Savings can be found in many places:

                                    1.  IT Costs

                                    2.  Floor Mats                                                                

                                    3.  Roof Repair

                                    4.  Waste Management

                                    5.  Insurance Programs

                                    6.  Self Insured Pools

                                    7.  Maintenance Contracts

                                    8.  General Contract Review   

                                    9.  Real Estate

It is nearly impossible to negotiate properly with friends and long time vendors:

Within the past 30 days I tried to negotiate with one of my vendors that has been working with ATI for over twelve years.  This vendor and I have been through many different projects and have had positive outcomes on every occasion.

On this most recent project the fees for services were very high since many hours and services were provided.  The project did not seem to support the costs. I was motivated to try to reduce the costs by reducing my obligations with my friend the vendor.

This put me at an extreme disadvantage since I did not want to loose a friend and yet I did not want to pay what the invoice was prepared for.

My only argument was to ask for some relief which was granted but I could not go the other step and maximize my savings.  I could not say anything about the quality of the work, the type of project, the other vendor(s) I might change to and just other negotiating strategies that I use when hired to reduce costs.

I received a 10% reduction when I should have been able to negotiate 20%. 

The reason to hire an outside cost reduction specialist is that the special relationships with your vendors are avoided.  Therefore, savings can be maximized.

The need to move quickly:

In order to maximize savings and avoid missing savings opportunities, speed to identify and implement saving is essential.  When a professional group is hired and they are on a performance based plan to maximize motivation, contingent fee arrangements are essential.  Moving quickly with positive results benefits all.

If savings can be identified and implemented three to four months quicker the costs of the services typically will be near zero.

If a company wants to identify savings opportunities, negotiate with vendors, find new vendors, analyze the invoices and contracts, implement savings opportunities and validate the savings, and train staff  this is a big mistake.  By the time all of this is learned the savings will be substantially reduced by time and internal costs and in a number of cases savings will never be realized.

It takes years of experience and cross industry knowledge to find quality products, vendors and services as well as lower cost solutions with no disruption.

Finally, the fastest and most economical way to save money is to encourage the purchasing department and the outside cost reduction specialist to become a team and to work together to maximize savings.

This will require patience and perseverance on the part of management because sometimes staff feels that savings could reflect on their job performance.  In order to maximize savings this hurdle must be overcome and management must encourage all members of the team that cost savings is the goal which all staff will be looked upon favorably when savings are realized.

The Contingent fee process of saving money is designed to enable the client to avoid any financial risk.  Savings are only paid for when validated to the client's satisfaction.  ATI's fees are based on a percentage of approved, implemented and validated savings.  The fast moving technology changes have forced ATI to work with vendors and processes that enable ATI to pass along cost savings solutions quickly.  ATI has developed systems, templates, databases, and trained personnel to implement cost effective price controls.  ATI's cross industry experiences have enabled ATI to maximize its client's savings and to become a leader in the cost reduction and profit recovery industry.  There are no budgets needed since all of ATI fess are paid from savings. Our  promise to you is "if there are no savings - no fees are due ATI." 

Please call us for additional information to learn how your company can substantially reduce costs - risk free!

We hope you will look forward to the Communicator and we would appreciate any feedback that you would like to provide. 

We look forward to hearing from you.  Please email comments to  dc@auditbills.com

ATI Cost Reduction & Profit Recovery Services

To unsubscribe please email to dc@auditbills.com and fill in the subject line "unsubscribe".