Building

Shareholder

Value

Expense Reduction Process

Developing an effective cost reduction, expense management program is very much like producing an effective advertising campaign.

We begin at a well-documented starting point, followed by a creative process that’s partly science, partly art, and mostly discipline and hard work, leading to a desirable and well-understood outcome.

Knowledge base of all transactions and activities.   Understanding of client’s and workers’ needs, wishes, constraints, processes, policies. Comparison to benchmarks.     Documented percents and actual dollar savings amounts.   Unitized measurements. Tangible and sustainable savings.   Trued-up to G/L, if desired. Maintain supplier good will.

Negotiate price & terms with vendors.   Package & bid out expense areas.   Substitute products or services, with same or better quality.   Aggregate or consolidate purchases.   Review current technology, productivity, capability and upgrade if necessary.   Get vendors' feedback on how to cut their own costs, to pass on to client.   Standardize, simplify processes.   Recommend & implement policy changes.   Outsource or insource.   Provide new solutions or capabilities.   Seek real cost drivers, and address whole problem.

We are paid on the basis of shared savings – true pay-for-performance. That means if we cannot find a way to save you money, then there is no fee for our services. What’s the catch? There is none.

Can you tell me more about the structure of a ValueNet cost reduction, expense management engagement?

Contact ValueNet Consulting Canada Inc.