Case Study - Indirect Spend Reduction
Indirect spend analysis can result in real, hard dollar savings. Since we have access to our clients’ invoicing, history, and other metrics, we work with our partners to analyze spend as soon as we get the green light from our clients. Without so much as lifting a finger, they begin to see real savings.
Challenge
A multi-unit, automotive franchisee was overpaying vendors for payroll, property taxes, treasury and bank fees, and waste services due to a lack of awareness about potential savings through negotiation.
Solution
Acctivator’s partner, SIB, conducts in-depth spend analysis to negotiate discounts on behalf of clients in key spend categories. These spend management partners review clients’ expense structure to determine where the most opportunity for savings lies. The spend analyst then negotiates on behalf of the client, and the client benefits from savings at no risk. And that’s exactly what happened for this multi-unit franchisee.
Results
Total savings to date: $193K
Annual Recurring Savings: $62K
Major Savings Areas:
Payroll
Property taxes
Treasury / Bank Fees
Waste
Key Takeaways
Savings were not the result of switching any products or vendors, or disrupting services
Savings were generated leveraging our knowledge of national pricing averages and plugging holes typically found in key provider agreements.