Here are the key questions that a management team should consider as part of a focused cost reduction program:

– Have we set a target, and how do we know it is achievable?

– Do we require more transformational change?

– How quickly do we need to get the cost out? Next month? Next year?

– How can we align cost targets with organizational priorities?

– Can we dedicate the team to the project envisioned, or do we need help?

– What should our PMO look like (size, structure)?

– Have we considered what the necessary reporting and tracking looks like?

– Do we have a change management plan in place?

– Can we create a better cost culture going forward? How do we keep costs from creeping back in?

– Do we have the right team and leaders to get the job done?

That last question is one that management teams do not consider often enough. Most organizations have in-house resources that are very capable of managing day-to-day operations. Every organization has the potential to conduct audits of their billings, renegotiate their vendor contracts, and achieve some degree of significant savings. However, working with an outsourced service provider that brings a broader set of tools and experience to the team can often produce better results.

Outside experts have superior vendor management expertise, access to document management technology, and an understanding of benchmark analytics that vendor management staff would rarely be able to acquire on their own. Bottom-line: implement a strategy, challenge the status quo, and make sure you have the right resources in place to optimize your profits.”

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA, saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our clients bottom-line. Limitless Technology manages your vendors, so you can manage and grow your business.

Because at the end of the day it’s how profitable you run your business that truly makes the difference. Those individuals which understand that both top line revenue and bottom line profits are equally important in every business, truly separates great leaders from mediocre ones when it comes to running a profit driven organization.

Cost reduction is important in business because it directly impacts the bottom line at no cost to an organization. (Unlike sales, which has direct material, labor, facilities, marketing, commissions, management, and administrative costs). By reducing costs, a company can increase its profitability and improve its financial health. This is especially important in times of economic uncertainty or when facing increased competition. 

Additionally, cost reduction can help a company become more efficient and agile, allowing it to respond more quickly to changes in the market. While top line revenue is important for growth, it is not sustainable if costs are not managed effectively. To draw an analogy, simply put “why would you place water into a leaky bucket?”

Therefore, a true balance between revenue growth and cost reduction is necessary for increase valuation and long-term success. 

billingoptimization#, costreduction#, expensereduction#, 3rdpartyvendormanagement#

No business should have to feel they are “on the watch” for changes in their contracts and agreements.  This includes those special “1-year promos” that are deigned to take advantage of companies who get complacent and don’t audit their billing. So instead, the price rolls to the current market retail prices which is usually DOUBLE the promo rate!  Now the service provider should INFORM their customer more clearly of any changes going into effect, clearly state them and offer cost saving OPTIONS?Well, I think we can agree that this is is NEVER going to happen!

Example from frustrated Corporation Manager:

“They didn’t put us on any plan after the expiration, but after I contacted them they supposedly put us back on it and told me to only pay what we were paying prior. It was a big fiasco and has been. I was not under the impression it was only a year thing, but I will contact them and my director to see how they want to proceed if we want to stay or go with another company.”

“I did speak with them and it has taken 5 phone calls over the course of 6 months several disconnection notices that they claimed to me they were going to adjust our account. Again just the other day we received another disconnect notice and I called them on Friday and apparently they only issued us an adjustment from December forward for some reason not November when it had started, and they are saying whatever the promotion was parts are not available.” – P.C. Orinda, CA

Let’s be very clear about this:  This treatment is “vendor abuse”. Service providers have had the ability for MANY YEARS to take advantage of their Clients, and most often do. Unfortunately, that means the business has only 2 options:

1. They can have an internal staff spend hours trying to keep up with the renewals, inventory, billing changes, audits, inspections, expired warranties, agreement promos, 3rd party charges and all the other aspects of contracting with vendors.
2. They can entrust these services to a company that provides a fully managed vendor and supplier service which includes; proprietary software, monthly bill auditing, proactive contract management, document management, compliance notifications, increased efficiency, and maximized profits.

 The choice seems pretty darn simple, doesn’t it?

Imagine all the hours FREED up from resources not having to deal with the frustration of vendor management. Having an EXPERT auditor, contract negotiator and accounts manager creating your unique profile including analytics and visibility into all spend. Having the ability to access all documents, contracts, bills, renewals, compliances, and warranties from ONE CENTRAL LOCATION – 24/7.  That is right, even while key vendor management resources are on vacation or away from the office for any reason,  when an important contact, bill or document is needed it is easily accessible by anyone with credentials.

We understand and respect the services the efforts that internal vendor management resources provide.  But sometimes, they simply cannot dive deep into every bill or invoice and provide the most optimized approach to improving your bottom line.  Sometimes, the only way to do that is by working with cost reduction specialists who do it every single day.

But not every vendor relationship is created equal. A true, risk-based approach requires organizations to first segment their vendors based on pre-determined criteria, and then establish an appropriate level of ongoing due diligence and oversight activities based on the assigned level of risk. And while the specific activities may vary across organizations, there are three types of risk you want to be sure to address.

• Operational Risks
• Financial Risks
• Regulatory Compliance Risk

OPERATIONAL RISKS

Operational risk is the risk that your organization will experience a major failure, shutdown, or unexpected disruption of some segment of your business if a vendor’s processes, people, or systems fail. The operational risk goes hand in hand with your reliance on a vendor and is typically higher with vendors that provide services such as outsourcing, IT systems, and data.

There are two good ways to take a proactive approach and mitigate operational risk: perform periodic on-site and/or due diligence reviews and create a contingency plan should you experience a failure with a risky vendor. These two risk-mitigation activities go hand-in-hand, especially for mission-critical vendors. Monitoring daily performances that don’t meet the standards required is also a good indication that in a time of risk there is a higher risk of disruption or failure.

FINANCIAL RISK

Financial risk is the risk that your organization is negatively impacted financially due to a vendor relationship. This can come in two forms: excessive costs and lost revenue.

Poor Vendor Service due to Finances

Many supplier performance issues are related to finances.

Deliveries were late, and shortages were piling up with no relief in sight. The primary supplier was actively blaming the secondary supplier for the bottleneck, claiming that their supplier was behind in their coating process. They began casting aspersions on the supplier’s lack of process control, communication and even hinted at ethical issues.

While the protocol was for the primary supplier to manage all downstream relationships, this problem had escalated high enough that it was time to call the supplier directly to get to the bottom of the issue and develop a get-well plan.

Negotiating and Enforcing Contract Compliance

Organizations understand the importance of managing competitive solicitations and negotiating good pricing. But negotiating a good price has little to do with managing costs, which comes from enforcing contract compliance, effectively managing the procure-to-pay cycle, and performing periodic cost and contractual audits. It’s the work done after the vendor contract is negotiated that mitigates the risk of excessive costs.

The other financial risk relates to the reliance on vendors who support your revenue-producing activities. Examples include fundraising companies, outsourced service providers, and fulfillment centers, to name a few.

It may also include vendors whose technologies you use to process financial transactions. Problems with these vendors may delay access to revenue or, in the worst cases, result in lost revenue for your organization.

It’s important to identify and segment these types of vendors to design the most appropriate diligence and oversight activities and to also integrate with your vendor management operational risk planning as it relates to contingencies.

Regulatory Compliance Risk 

This has become a HOT TOPIC in many industries. Nonprofit organizations like health plans, healthcare systems, and credit unions, along with those that receive Federal grants, are heavily regulated by Federal agencies. And in many cases, certain regulations pass through to third-party vendors.

Regulatory compliance risk is the risk that a third-party vendor will violate a law or regulation that your organization has placed on them as a requirement for doing business with you.

Ensure your risk management activities enable you to evaluate how well your vendors are complying with the appropriate laws and regulations.

Even though a supplier may be remarkably reliable, the fact that their component or ingredient is essential to your finished product makes them high-risk. Partnering with a company that oversees these risks to proactively avoid business disruption is key to avoiding potential problems.

Audits aren’t just necessary for validating new suppliers––they’re an important tool for maintaining quality and compliance over time. The recent rise in outsourcing only further underscores the importance of having a plan in place to conduct regular evaluations led by skilled quality professionals.

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms, we utilize technology, processes, expertise, time, and resources to improve our client’s bottom line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at 407.330.4466

Your company starts to grow, and you need more technology to keep up with additional staff, customers and to help improve the process. You are aware of the efficiencies and cost savings made possible by new technologies and are upgrading their infrastructures as a result.

But are you aware of How Purchasing more Technology can lead to Cost Creep?

Every CFO knows about “cost creep”; the slow build-up over time in the cost/revenue ratio. In today’s marketplace, there is an increasing number of service providers who can deliver more efficient solutions, giving end-users more options than ever.

In the beginning, new suppliers are on their very best behavior, cutting deals and slashing costs. The client will enjoy some pretty large cost savings during the first couple of years.

However, as the contract matures and becomes less visible to the client, costs begin to slowly creep up until, if unchecked, they can accelerate way beyond the initially agreed-upon amount.

When you purchase more services, your plans may mutate, creating new contracts that incur additional charges. Over time, small ancillary charges can appear but are not questioned, increasing your bills slowly. This “creep” may leave you paying for services you do not need and may not even understand.

Because data is at the heart of every business and it plays a crucial role in businesses staying connected, technology bills are perceived as a necessary fixed expense and are often overlooked even when the initial cost has increased yet services have not changed.

Companies, Organizations, and Businesses can easily incur monthly expenses ranging from thousands to tens of thousands of dollars each month. Managing the financial component of vendors can be a nightmare! Looking at just telecom you have: Multiple carriers, multiple contracts, introductory offers, equipment, and different locations. Just these factors can lead to poor financial management and procurement processes.

Learn how to improve vendor management processes and improve your bottom line! #stopcostcreep #reducecostcreep

With a Vendor Management Solution, contract experts can negotiate a fixed rate for a particular service. The contract terms must be met ensuring that both parties are aware of what is expected and any variances will be flagged and the vendor will be held accountable for any charges and changes outside of the agreed terms.

If you have questions about any of our VMS benefits contact us today at 866-504-4050 to learn more about our Vendor Management Solutions.

Vendor management is a core competence in successful business. In a competitive marketplace, businesses must look at creative ways to extract more value from providers, while reducing risk and upholding quality.

Simply beating suppliers down on price year after year is not a sustainable strategy!

Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.

Through our Billing Optimization and Vendor Management Solutions proprietary platforms, we utilize technology, processes, expertise, time, and resources to improve our client’s bottom line.

Limitless Technology manages your vendors, so you can manage and grow your business.

For Additional Information Contact us at 407.330.4466

As companies attempt to streamline their costs, an area that frequently gets overlooked is vendor management. This critical function of an organization is oftentimes plagued with errors and inefficiencies, especially if it has not been given the proper attention.

Problems include not knowing the exact services you have, SLA’s for providing the service and whether or not you’re paying too much. Recognizing the “whether or not” in itself is an enormous problem and a difficult task. However, there are unique service offerings and software based toolsets which companies can take advantage of to fully understand their current vendor environment.

Just as a retail store takes an inventory of what products are on their shelves, companies need to do an inventory of their vendor and supplier management systems. A expertly  managed VMS solution proactively measures and monitors your vendor environment, so you know where every penny is going and the value you’re receiving in return.

It’s easy for unnecessary services — (which in many instances go unused or provide little value) — to creep into your vendor invoice line items. The VMS system analytics gives you a 360 degree view so you can accurately gauge your situation, determine whether service changes need to be made and whether it’s feasible to reduce costs.

VMS is essentially helps analyze where a company’s vendor infrastructure is today and what modifications can be made to improve the organization tomorrow.

The end result of the VMS Service and Software is to ensure individuals responsible for their company’s vendor management can make better educated decisions about what they actually need, what risks are involved and how much to pay for them. Additionally, the data enables them to more effectively manage adds, moves or changes to  line items, equipment and services as their company expands. It puts users in control of their vended services which inevitably reduces costs, improves efficiency, mitigates risk and can save significant amounts of money.

Whether you’re being billed correctly or utilizing your vendors to full capacity will no longer be a challenge once you engage in a fully managed vendor management service. Once engaged with VMS, you will know what services you’re paying for, their true costs and the value they’re delivering to your organization.

In order to survive in today’s business environment, you must find ways to increase profitability, improve productivity and obtain a competitive advantage. A VMS solution provides you with some additional help to achieve this objectives.

RESOURCE: https://seniorcare.levinassociates.com/2018/06/15/cash-is-king-for-skilled-nursing-targets/

Recently, an article was placed by The Senior Care investor which read:

“When buyers value a skilled nursing facilities, or any senior living property, it is always the absolute level of cash flow (NOI) that matters, not the operating margin or expense ratio. Buyers are purchasing a stream of net cash flow, and that net cash flow is going to provide the returns to capital providers. As long as cap rates remain stable, which they certainly have in the skilled nursing sector, when cash flow increases, the prices paid increase.”

From 2008 to 2015, the average cash flow per bed of SNFs sold increased by 63% (peaking in 2015 at $9,600 per bed), and this was driving the five straight years of record average prices for skilled nursing facilities, according to the 23rd Edition of The Senior Care Acquisition Report https://products.levinassociates.com/downloads/scar23/ . Although there was a small dip from 2015 to 2016 to $8,800 per bed, just as the average price per bed peaked in 2016, the simple average does not always tell the story. In 2017, there was a very small decrease in the average NOI per bed for SNFs sold (a 3% drop to $8,500 per bed), but the average price per bed plunged by 18%.

The reason is that when we recalculated the statistics on a weighted average basis, the NOI per bed sold dropped from $12,100 in 2016 to $9,450 in 2017, representing a nearly 22% decline. This clearly explains the 18% drop in average prices, given average cap rates were almost identical in both years. The $12,100 figure also explains why the average price per bed peaked in 2016.”

For illustration purposes, for every $50,000 that drops to the bottom line, applying a 13-14% cap rate could potentially equate into $350-380k in additional value to the portfolio.

So, if “cash is king” then, having the highest profitability and least amount of operating expense ratios is imperative to the true “total success” or evaluation of a property, ownership and management. Taking these facts into consideration, everything possible should be done to drive costs out of your business (without sacrificing great service deliverables) with your vendors. Problem is…most people do not understand or believe this is possible. The internal thought is…

• “we couldn’t be being that much overcharged by our vendors”
• “you pay for what you get”
• “my people have that covered”
• “we have that covered”
• “I don’t want my service to go down because I am paying less”

These “big misses and paradigms” must shift in order to have the best operation, and most profitable entity.

While this issue remains for many companies, smart companies ARE getting ahead of this problem by finding a partner with the tools and expertise to manage the devil in their details as it relates to local, regional even national service relate costs. A partner they can trust, that will do the benchmark analysis on every single vendor, actively renegotiate for lower pricing and better T&Cs, ensure bills get paid on time and services aren’t shut off, and ultimately resulting in elimination of fat and more strategic use of budgets without losing strong deliverables from vendors.

This IS what our team at LIMITLESS does All Day and Every Day. We take this burden off of your people – so they can focus on the bigger problems at hand. We partner with each member of your team so they feel confident they can maintain the overall control, won’t lose the vendor relationships they value but, WILL gain the critical support they need to make better decisions. The support we provide allows your team to focus on the important work of ensuring occupancy rates, delivering exceptional resident experiences, and grow their business and market shares.

Don’t hesitate to stop the waste, and increase your profits now…and when it comes time to sell.

Contact LIMITLESS today for a FREE CONSULTATION to discover how to get control of your unmanaged spend and reduce expenses in your business.

Other Ways to Connect with Us.

Request more info: http://limitlesstechnology.com/contact-us/
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Important Agreement signed last week. You ask yourself … “Where is that Contract – I know it’s in HERE somewhere I just saw it last week. I know it was filed … Account name or by service? I can’t find it!” Meanwhile, management is still in meeting waiting for the signed Agreement.

How REFERENCEABLE is your CURRENT VENDOR Database? How quickly could you retrieve files, agreements, contracts, vendor contact information or a particular invoice by date or total amount PAID? How can those documents be retrieved “from another location?”

LIMITLESS Vendor Management Solutions is THE Vendor Management Solution Software that brings Superior Spend Analytics and Visibility within a FULLY MANAGED software solution. Contact LIMITLESS for more information.

Your company starts to grow, and you need more technology to keep up with additional staff, customers and to help improve process. You are aware of the efficiencies and cost savings made possible by new technologies and are upgrading their infrastructures as a result.

But are you aware of How Purchasing more Technology can lead to Cost Creep?

Every CFO knows about “cost creep”; the slow build up over time in the cost/revenue ratio.   In today’s marketplace, there are an increasing number of service providers who can deliver more efficient solutions, giving end users more options than ever.

In the beginning new suppliers are on their very best behavior, cutting deals and slashing cost. The client will enjoy some pretty large cost savings during the first couple of years.

However, as the contract matures and becomes less visible to the client, costs begin to slowly creep up until, if unchecked, they can accelerate way beyond the initially agreed upon amount.

When you purchase more services, your plans may mutate, creating new contracts that incur additional charges. Over time, small ancillary charges can appear but are not questioned, increasing your bills slowly. This “creep” may leave you paying for services you do not need and may not even understand.

Because data is at the heart of every business and it plays a crucial role in businesses staying connected, technology bills are perceived as a necessary fixed expense and are often overlooked even when the initial cost has increased yet services have not changed.

Companies, Organizations and Businesses can easily incur monthly expenses ranging from thousands to tens of thousands of dollars each month.  Managing the financial component of vendors can be a nightmare! Looking at just telecom you have: Multiple carriers, multiple contracts, introductory offers, equipment, and different locations. Just these factors can lead to poor financial management and procurement processes.

LEARN MORE ABOUT COST CREEP from Todd Larsen, CEO

Are you overlooking the financial costs of managing suppliers? What are the risks of doing that?

Here are findings from top research names in the industry. While cost creep can occur with any supplier these statistics share the findings in just telecom alone…

• – Telecom costs rank in the top 5 expenses for most companies (Gartner)
• – 80% of carrier bills contain errors (Gartner)
• – Telecom analysts spend on average 20% of their time identifying errors (Gartner)
• – Enterprises forfeit 12%-17% of telecom expenses without a proactive approach to telecom cost management (Aberdeen Group)

With a Vendor Management Solution contract experts can negotiate a fixed rate for a particular service. The contract terms must be met ensuring that both parties are aware of what is expected and any variances will be flagged and the vendor will be held accountable for any charges and changes outside of the agreed terms.

If you have questions about any of our VMS benefits contact us today at 866-504-4050 to learn more about our Vendor Management Solutions