If you are here you are concerned about not just overpaying vendors but, profits losses and risks costing your company far more than is realized on the surface. You may have considered a vendor management solution in the past but haven’t taken the next step. Why?

One of the most common reasons we have discovered is Clients believe they have this handled with internal personnel, it will be too tasking on their teams to manage, and they don’t want to upset the apple cart with their employees”.

However, in most cases these “beliefs” are just fallacies and here is why:

  • MY PEOPLE HAVE THIS COVERED – FALSE!!! as in 98%+ cases internal departments…DO NOT have the appropriate benchmark analytics or process to effectively negotiate the best rates, terms and conditions for 3rd party indirect spends.
  • MANAGEMENT or AP – DOES THIS. FALSE!!! MGT. and AP DOES NOT have the time – NOR do they Perform Detailed “Forensic-Like” Auditing in the appropriate way on a monthly basis. This is because most company based AP processes and systems DO NOT have a way to compare individual price points to contracts rates or market determining variables: i.e. taxes, tariffs, rate escalators, metering changes, etc. AND the AP personnel DO NOT have the time to do it right because they are too busy “CRUNCHING IN” MONTH END bills to get Paid!
    • DATA COLLECTION – A Billing Optimization process needs a Single LOA signed by a Top Level Executive, and only ONE copy of a detailed bill. All the contracts and supporting information can be collected from the vendors with this simple authorized paperwork and information. WHEN more than a single LOA is needed Limitless works directly with the vendor and  right personnel to sign a FULLY PREPARED LOA for them. They just need to sign. (less than a minute of work even if they did read the entire LOA.
  • FOLLOW UPS BASED ON RECOMMENDATIONS – This is a necessary step because line items on a bill CANNOT be disconnected or services eliminated without the verification of viability from the correct Department or Field personnel from the Company. HOWEVER, the Client time of VERIFIYING these services compared to what we do to find the errors or discrepancies is 1/20th of the effort needed to drive out unnecessary costs.
  • VERIFICATION BEFORE BILLING – In 90% of all cases we can obtain the bill from the Vendor so MINIMUM TIME IS SPENT BY CLIENT.
  • THIS AUDITING PROCESS SHOULD BE DONE IN 4-6 WEEKS. FALSE!!! It takes time to do a THOROUGH DEEP FORENSIC REVIEW of spends and contract terms. Also, ALL CONTRACTS cannot be NEGOTIATED at the same time DUE TO CONTRACT END DATES. A Process like this could take some time but IT IS WORTH THE OUTCOME IN EVERY CASE!
  • THIS ONLY HAS TO BE DONE ONCE AND THEN WE ARE GOOD. FALSE!!! Errors are made continually by vendors for many various reasons and these errors continue reduce profitability and haunt Clients P&L’s.
  • TRUSTING BLINDLY. FALSE and WHY would you? All people need to be held accountable internally and externally, BECAUSE THAT”S HOW COMPANYS BECOME GREAT!!! If you do not inspect what you expect, then expect the worst.

And even worse…

What about the effective and efficient management of: Inspections, Certifications, Licenses, Preventative Maintenance, Assets, etc.….

FOR this you need a fully managed Vendor Management Process and System. Do you have one? WHY NOT?

If you would like more information on how to mitigate cost creep, lost profits and risk contact us now.

Because …The time you procrastinate are profits already lost.

ACTUAL CLIENT CASE, September 2019

The Vendor: Popular National Internet Provider

The Case: Client had 25 individual sub-accounts for internet services at multiple locations. These individual accounts all consolidated into one master account so our client only would receive one monthly invoice. 3 out of the 25 individual sub-accounts (12% of accounts) were not billing to their contracted rates. The client’s internal IT and AP teams never conducted a comparison per location when service was originally invoiced at the new locations. The company’s internal teams allowed this incorrect billing to occur for two entire fiscal years!

Even worse, the original agreement was not reviewed and vetted in detail. A clause was signed by the company which limited any dispute about incorrect charges to be recoverable only within 90 days from time of invoice. When our consultants approached the vendor about the overcharges, they state they do not need to refund the overbilling. What a nightmare for an organization looking to reduce unnecessary expenses.

The Cost: The Monthly overcharge $275 dollars per incorrect location. This calculates to $825 in overcharges for their total account. Two years of overcharges is equal to $19,800 of company dollars that were LOST and essentially gifted to their vendor as a “thank you” for incorrectly billing them!

The Solution: Vendor Management Solutions are unique to every organization. At Limitless~ Cost Reduction Specialists, our expert team of Auditors, Contract Negotiators, and Vendor Management Teams create a business-personalized strategy that will increase efficiency in your vendor management processes, reduce vendor risk, and minimize expenses. If you would like a Free 20-minute consultation, with CEO Todd Larsen to help address your vendor management challenges, click here to schedule a time that is best for you!

Make sure your business doesn’t suffer the same mistake. Click here to take the next steps to STOP overpaying.

What would you like to know? If you would like more information contact us and let us know.

[Form id=”1″]