PPSG's Expense Savings and Strategic Sourcing practice specializes in generating bottom-line cost savings. We consistently achieve significant savings through focused analysis of spending patterns, identification of achievable savings opportunities, and rigorous execution of savings strategies. Our Clients are diverse, and include both large and small enterprises, public and private companies, government agencies and tax-exempt organizations.
The Savings Imperative
The current economic environment compels organizations across all sectors to reduce operational costs and maximize resources. Typically, however, initial cost savings efforts are focused solely on highly visible and obvious spend categories such as Personnel, Travel, and Capital Expenditures. If not done carefully, these cuts may have the effect of hampering organizational effectiveness.
PPSG’s approach is different. We are able to offer high-yield savings and dollar retrieval without threatening productivity. In fact, PPSG has demonstrated a consistent track record of delivering savings while improving productivity and service quality. |
How We Achieve Savings - The PPSG Expense Savings System SM
PPSG’s Expense Savings System SM provides distinctive precision while enabling us to build a custom solution for each Client. Our Expense Savings System SM has three phases:
Phase I. Target and Quantify Cost Savings Opportunities
After obtaining all relevant expenditure data from our Client, PPSG sorts and analyzes the data and compares it against our proprietary benchmarks. Then, working with our Client’s stated criteria in mind, savings opportunities are rated, targets are prioritized and the overall savings portfolio is quantified.
Phase II. Formulate Savings Strategy
The intervention strategies PPSG employs are comprehensive and multi-tiered; they include Consolidation, Standardization, Leverage, Competitive Pricing, Insourcing, Outsourcing, Offshoring and Negotiation. Multiple strategies are pursued in parallel in order to identify all available cost savings options and create the greatest leverage for negotiating with suppliers. All options are then reviewed with our Client, parameters and priorities jointly determined, and an overall Savings Strategy agreed upon.
Phase III. Execute Savings Strategy
PPSG offers to be solely responsible for all aspects of the execution phase. As articulated in the custom Savings Strategy, PPSG professionals identify alternative suppliers, negotiate with existing and potential suppliers, facilitate consolidation of purchasing, write RFPs for competitive bidding, identify process changes that can impact costs, etc. The Savings Strategy is not considered fully executed until new contracts and agreements have been finalized with suppliers and actual savings have begun to be realized.
Why Are We So Effective?
PPSG can generate a level of savings well beyond our Client's? internal procurement and contract management efforts through a unique combination of: |
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