Controlling Operating Costs for a
Fast Growing Company
Success Story - Envision EMI
Our Strategy and Approach
Given the company’s fast growth our strategy for the engagement was to focus on operating expenses that were a) critical to the services they provided, and b) were variable and increasing in proportion to their growth in revenue. Together, the team identified seven (7) categories of expenses to analyze including printing, merchant processing fees, transportation and promotional products.
For each of the seven categories we:
met with internal buyers to understand their needs and requirements,
performed a detailed review of current vendors, contracts, terms and pricing,
evaluated a variety of sourcing strategies and contract options, and
negotiated and implemented improved contracts, terms and pricing in five of the seven categories.
Our work confirmed what we had suspected. The company had a solid control on their operating expenses, and good sourcing strategies in place in most areas.
The good news is that we were still able to help them identify savings opportunities in five of the seven categories that totaled just over $1,000,000 annually. We also helped them improve a variety of other components including reporting, pricing transparency, invoicing and payment processing.
When we first met the management team at Envision EMI, they were on the fast track for growth. The company, which provided a comprehensive offering of educational programs for middle and high school students, had nearly doubled in size over a five year period.
Most companies have tremendous operational growing pains when they expand so quickly. Impressively, Envision was operating like a well-oiled machine. Yet to their credit, the CFO and VP of Finance wanted to ensure they were doing everything they could to manage vendor risks and control operating costs during this time of growth. So they engaged Vendor Centric to help them identify and evaluate opportunities for doing both.
“Over several weeks the Vendor Centric team identified over $1 million of annual cost saving with providers who provided better service and were more responsive. Through both disciplined thought and consistent follow through we achieved the desired results. Vendor Centric is a trusted business partner who is on my A team.”
Kirk McLaren, VP Finance & Administration
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