• How does it work?  
• How long does it take?  
• What is Covered?
• Next Steps ... 
• What does it cost?       

A top line summary of what happens when we implement a spending review in your business.

There is no cost for us to undertake any of this work. We do however take a proportion of the savings as and when you achieve them. Our rewards then ONLY come as you make the savings.

Unlike other systems, methods or practices, with the Cost Reduction Analysis you will benefit from positive cash-flow.

• We DO NOT ask for any signed Direct Debit or regular fixed monthly payments.
• You only pay as you make savings that you haven’t been able to achieve with any other methods.

Some businesses will contemplate undertaking this work themselves once we have raised the matter and created a level of interest and a perception of savings.

• The reason they do this is to avoid our fees.
• The cold hard reality is the ability to actually carry out the work required is limited by:
  • Time available to do this
  • Actual practical experience of doing this work

In short it’s like learning how to do a tax return yourself because you have some knowledge of the tax system. How many people or businesses would actually do that?

Most people ask us how long it takes to do a Cost Reduction Analysis.

Their expectations vary widely but in the main the thoughts are always that the time involved is not available within the accounts function to undertake an audit.

• The reality is it only takes a short time at the outset to identify that there are real savings to be had.
• We focus on a sample set initially and prove the concept on those items then over time develop a relationship to undertake more of this work on behalf of the clients
• After about 2-4 weeks, the consultant will come back to you and discuss with you the savings we have identified.
  • We will respond to any questions arising and cover any detail of the negotiated savings.
• It is entirely your choice which of the identified savings you choose to implement and where necessary the Cost Reduction consultant will work with you to ensure a smooth transition of suppliers.

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What is Covered?

We actually provide every option solution from looking at single areas of cost, all the way through to full audits and in some businesses we implant our own buyer on a fixed costs basis for all spending on:

• Purchases – Cost of Sales
• Overheads
• Expenses
• We do have a schedule several pages long of detailed things we cover that if
  you want we can let you have – but the list basically says EVERYTHING

Next Steps ...

The first step 

• Gather together copies of the information required to undertake the process.
• We do not require any original documentation – only copies.

This is either done by your YBG contact immediately or by arrangement with a YBG colleague.

An appointment will be arranged for a YBG colleague to meet you.

• If you have a finance team, they need to be ready to react and to prepare copy documents.

Agreement

We have a very short Agreement for your signature to cover this first stage and it clarifies there are no costs incurred in undertaking the Review Process and it is ONLY WHEN you make savings that our fees are charged.

Consultancy Process

After we have collated the information required, we forward this on your behalf to your nominated consultant at Spending Review.

We will then advise and confirm to you by Email:

• That your information has been passed to the Cost Reduction Company.
• Full contact details for you & your business and for the Cost Reduction Consultant allocated to handle your project.
• It will also ideally contain a choice of times for the consultant to contact you direct to respond to any questions arising.
• Your initial contact (s) steps back and all conversations are held in confidence directly with your consultant.
  • On receipt of the information, your Cost Reduction Consultant will contact you direct via Email or Phone to let you know your information has been received and that they are acting on the information immediately.
  • Any questions arising in the process so far can be raised and clarified. If necessary, your consultant will review with you and agree any additional areas that this initial review will cover .
• We will cover as much or as little as you agree with the consultant.
• Apart from the fact that they are highly experienced in undertaking reviews, it is likely they will have dealt with a great many businesses just like yours.
• They handle all negotiations sensitively maintaining confidences and all relationships. This is a key factor in ability to do our work in the first place.

In the situation where your documents are held by a 3rd party, please arrange a letter on your letterhead giving us authority to request copy documentation from whoever has your original accounting documentation.

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What does it cost?  

Our fees are based on the savings you will make.

• The base line is that you will retain half and half will go to the Cost Reduction Company to undertake the services provided.
• The basis of the agreement depends on the inital contract agreed, although there are on occasions longer term agreements available at lower commission rates.
• You can discuss this directly with the consultant.

Billing

In line with your normal billing period for the suppliers where you achieve savings (weekly, monthly, quarterly, annually) the Cost Reduction Company will then invoice you for the agreed percentage of fees against the savings you actually achieve for the month.

This takes account of any fall or rise in purchase or business levels.

You then settle the invoice having made savings that you have not previously been able to achieve and just as importantly, you only pay fees as you actually achieve the savings.

Most clients then expand the services they take up and start to use us in all negotiations and also to look at any other cost areas.

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