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Above the Standard Procurement Group, Inc.

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Presentation on theme: "Above the Standard Procurement Group, Inc."— Presentation transcript:

1 Above the Standard Procurement Group, Inc.
“Reduce your expenses through our no cost assessment – we receive payment only after your savings occur”

2 Who is our Market? There are many reasons why companies work with us and call us a partner in their business. The bottom line is the increasing cost to do business – many small to medium sized companies are not able to afford a procurement department and purchasing personnel, who understand and know how to reduce costs. For some of our clients, that do have a procurement department, they do not have the resources to properly and effectively outsource their needed services, personnel, and goods to others. The bottom line for businesses counts more than ever before and will continue in and out of recession, because global competition will keep margins low. Very simply put, “we reduce your costs for the goods and services you are already buying and increase efficiencies without jeopardizing quality.” We do this at no cost up front to you only receiving payment after we have been successful! We all win – you, us, and the vendor!

3 What is Procurement? Procurement are the steps that are used in the acquisition of goods and services. Once the need has been established for a specific good and/or service, the specifics that relate to what is needed, how many, when, at what price, with what warranty, and many other specifics are addressed in a Request for Proposals (RFP). The next procurement step involves evaluating potential vendors in accordance with the RFP. In most cases, this involves a bidding process with the RFP. From the proposals received by each potential vendor, they are rated on the specifics outlined from the RFP. Then, negotiating can take place. Once a chosen vendor is selected, the final stage of the procurement process takes place through an agreed upon contract. The final step involves taking possession of the desired good (s) and/or service, ensuring that the item is in compliance with all the claims made by the supplier, and rendering payment according to the terms worked out with the supplier.

4 Why do Companies and People engage in our Procurement Process and Services?
Reduce costs and increase quality. Centralize procurement. Provide needed goods and/or services. Build new markets in your company. Provide Just-In-Time Inventory (JIT). Increase supply chain efficiency. Retain best value and remain competitive. Government compliance. Supplier performance improvement. Support day-to-day buying activity. Policy/Procedure creation, implementation, validation.

5 Why do Companies and People engage in our Procurement Process and Services? (continued)
Transaction automation and processing. Bring focus to your core competencies. Develop a strong end-user to provider relationship. Lower procurement related labor costs. Improve overall procurement performance. Greater control, reporting, and vendor compliance. Organization and internal cost performance. Data for benchmark analysis, goals, and results. Procurement personnel training. Procurement department creation and implementation.

6 What are other companies doing because of the current and future marketplace?
The Aberdeen Group Report, one of America’s premier business management research groups, stated that one of the biggest growth areas in Business Process Outsourcing will be procurement outsourcing. This has proven to be true. This study of more than 260 companies in a variety of industries found that internal purchasing departments are increasingly seeking the involvement of third-party experts to leverage their abilities to drive down costs. In fact, 40% of the organizations surveyed indicated that they would be outsourcing all or part of their procurement functions in the next two years. The top four reasons cited were: 45% pressures to lower procurement transaction costs; 41% increased global competition; 36% need to gain access to improved pricing; and 34% pressures to re-focus personnel on more strategic activities.

7 Why does Procurement Outsourcing Continue to Gain Momentum?
Many companies are outsourcing their procurement in record numbers, because of cost cutting measures, global competition, and reduced resources. A study by Everest Research Group, claimed that procurement outsourcing delivers five times the savings of the outsourcing of other areas such as IT, finance, and accounting. ICG Commerce announced that the amount of spend it manages on behalf of other companies had spiked by 50% from last year. Another recent study in the summer of 2009, by Everest, concluded that procurement outsourcing can impact a cost base representing percent of revenues of a financial services organization, said Menzigian.

8 The Future of Procurement Outsourcing is Now!
In 2008, large manufacturers helped lead the procurement outsourcing market to 30% growth, according to a recent study by Everest Research Institute. Manufacturing is the largest adopter of PO, accounting for nearly 70% of contracts signed. In 2009, PO increased in all types of industries, companies, and organizations. This study found that significant savings can be achieved between 5 to 15% of revenue, meaning that a $10 billion company can potentially realize between $50 million to $150 million through procurement outsourcing. Sixty percent of the annual contract manufacturing value was with two suppliers, IBM and ICG Commerce. For example, United Technologies signed a contract with IBM and was able to save in excess of $250 million in indirect purchases. Other major PO suppliers to manufacturers include DSSI, Infosys, BPO and Xchanging.

9 The Future of Procurement Outsourcing is Now! (continued)
The future is bright and profitable for procurement outsourcing, as companies continue to look for ways to improve performance, bolster bottom line revenues, and lower operating costs. As this industry continues to grow, the traditional functions like fleet maintenance, payroll processing, legal services, and local delivery continue to be expanded. Other areas that had never been outsourced are taking place in record growth, such as recruiting, hiring and human resource management functions. In all reality, anything and everything is being outsourced, because companies continue to refine their missions and business models looking for cheaper, better, and faster. Those who make up the procurement professionals at Above the Standard Procurement Group, including the CEO, have conducted procurement outsourcing in the following areas in many different industries: Advertising, Cellular, Cleaning Janitorial, Computers and PC Peripherals, Copiers, Credit, Data Disposal, Energy, Facilities, Financial Services, Financing, Fleet, Food, Fuel, Green, Human Resources, HVAC, Insurance, IT, MRO (Industrial Supplies), Office Supplies, Print (business cards, envelopes, stationary, etc.), Promotional, Shipping, Logistics, Software, Telecommunications, Tires, Travel, Uniforms, Waste Removal, And much more….

10 What are the Procurement Cost Details of Outsourcing?
Aberdeen measured the costs of the requisition-to-order cycle in many companies. What they found through procurement outsourcing was lower costs through lower transaction costs as well as from lower absolute costs on the items purchased. Before outsourcing the cost was $33.00 – after outsourcing, the cost was $14.15 – a savings of more than 57% in staff resource costs! Aberdeen’s research found that for each dollar of spend brought under outside procurement management, companies were able to realize cost savings of between 5% and 20%. Keep in mind that this is an average, with larger companies. With smaller and medium sized companies, there is a greater opportunity to increase the percentage savings.

11 What are the Procurement Cost Details of Outsourcing? (continued)
ATSPG has brought about many different outcomes for savings, such as:

12 What are the Procurement Cost Details of Outsourcing
What are the Procurement Cost Details of Outsourcing? Some of our results are listed below: Percentage Savings Dollar Amount Saved – 1st Year Good/Service and Company Type 32% 38,000 Office Supplies, Federal Contractor 17% 298,000 Travel (air, hotel, and car rental), Aggregate 15% 32,000 Promotional Items, Cement 24% 252,000 Furniture, Quarry 34% 354,000 Office Supplies, Toner, Paper, PC, Federal 47% 602,000 Telecom/Network, Construction

13 What are the Procurement Cost Details of Outsourcing
What are the Procurement Cost Details of Outsourcing? Some of our results are listed below: Percentage Savings Dollar Amount Saved – 1st Year Good/Service and Company Type 45% 104,000 Copiers, Educational Youth Organization 13% 321,000 Fuel/Gas, Asphalt, Construction 28% 266,000 Filters (MRO), Fleet & Machinery 31% 1,200,000 Explosives, Quarries 37% 359,640 Fleet Finance, Fleet 43% 905,000 Cellular, Construction

14 What are the Procurement Cost Details of Outsourcing
What are the Procurement Cost Details of Outsourcing? Some of our results are listed below: Percentage Savings Dollar Amount Saved – 1st Year Good/Service and Company Type 23% 52,000 Uniforms, Federal 7% 1,820,000 Food, Tribe/Casino 31% 299,000 Chemical, Cleaning, Janitorial, Casino 17% 36,040 Personal Computers, Educational Facility 62% 2,100,098 Credit Card/ATM, Casino 11% 244,581 IT, Computers, Banking

15 What are the Procurement Cost Details of Outsourcing
What are the Procurement Cost Details of Outsourcing? Some of our results are listed below: Percentage Savings Dollar Amount Saved – 1st Year Good/Service and Company Type 28% 22,064 Landscaping, Facilities 6% 486,000 Food, Retail Gas Stores (C-Stores) 19% 298,000 Policy, Compliance, Federal 22% 98,000 Commercial Trucks & Buses, Fleet, Tribal Your Percentage Your Amount Saved Your Company

16 Cost Reduction Example

17 What are the Procurement Cost Details of Outsourcing
What are the Procurement Cost Details of Outsourcing? Some of the Procurement Performances (continued) Some of the savings are in the millions of dollars per each category. The future of procurement outsourcing is here and will become more and more the norm, because all company’s bottom lines are becoming thinner and thinner in this global market and economy. Even with increased revenues (sales), the margins are still less. Because of the cost for purchasing personnel, it makes more financial sense to engage in procurement outsourcing: Less expensive; Less overhead; More savings; More flexibility; and Supportive to current procurement staff.

18 What are Some of the Areas that Differentiate us from others?
Procure just about any area with an impact. Reduce costs with greater percentage more times than not. Proven several year process for quick and effective RFP/Bid. Partner with you and your vendors for long-term business. Believe and practice old fashioned business with real results. Only conduct business where it makes sense. Your winning vendor agrees to lock in the contracted price for the contract term (in most cases).

19 What is Important to the Above Standard Procurement Group?
Local. Goods and services best value. National standards and processes. Procurement practices are integrity driven. Quality service, follow-up, and long-term relationship. Client communication and understanding. Code of ethics. Cost reduction with increased efficiency through procurement. Proven system that bring realistic outcomes and solutions.

20 What is Important to the Above Standard Procurement Group? (continued)
Standardized sales process. Open environment instills communication and solutions. Promote accountability through our quality control. Consistent follow up to ensure we meet your expectations. Feedback with proactive change.

21 What is our Mission and How does it help You?
We are a procurement outsourcing company that brings together the buyer, any company in the U.S., with our Franchisee who specialize in procurement, cost reduction, and efficiency improvement. At every juncture, we offer and deliver to our clients personalized service that focuses on their unique needs. Our passion for procurement is to help you reduce your cost and help you be more efficient. We are inspired by innovative thinking and solutions that bring real change and results. It is to serve You, while providing the agreed upon services with the highest quality delivery, for an affected long-term result.

22 Top Priorities Provide goods and services to your company that meet or exceed quality, meet quantity, meet delivery timeliness, warranty coverage, and other areas specified and desired by you and all of our clients as outlined in each specific RFP. Protect the bottom line of your company through procurement outsourcing and cost reduction, per unit cost reductions, and added services at no additional costs from the chosen winning vendor. Diversify your vendors through supplier diversity programs. Mutual prosperity is a must for our company. We value social and environmental responsibility.

23 Our Tools, Objectives, and Goals
Create and maintain productive, understandable systems, and procedures. Create, develop, and maintain relationships with vendors that can assist you in accomplishing your mission statement in coordination with our mission statement and long-term goals (balance between efficiency and safeguarding your resources). Follow the procurement procedures to protect all parties. Create efficiency in every Above the Standard Procurement Group endeavor, thus reducing the amount of time for each progressive step in the procurement process for your company. Facilitate ease of use, communication, and consistent application of the procurement process for all parties.

24 Our Service Guarantee to You
The best value for the right goods and/or services. These goods and/or services at the right price. No cost to you for our cost reduction strategies through the RFP process until your goods/services costs have been reduced. The guidelines of General Procurement Principles, the Policies and Procedures of Above The Standard Procurement Group, and your company guidelines will be followed to accomplish the above. The activation and the consistent application of the above mission statement will ensure the integrity of the process while protecting the bottom line of your company.

25 What is the Next Step for You?
No cost assessment for potential expense reduction areas. Summary of these potential areas submitted. Credit application, signed agreement for areas to be procured, with agreed upon percentage. Conduct RFP/Bid process for selected areas. Begin procurement outsourcing for project (s) outlined. Communicate regularly with those involved in the process. Complete each RFP and select vendor. Selected vendor submits the contract and is signed in accordance to what was specified in the RFP.

26 What is the Next Step? (continued)
Winning vendor provides goods and/or services. Percentage and annual cost savings confirmed. Signed agreement, with the percentage and dollar amount saved is sent to ATSPG and invoiced for the amount. Dollar amount of contract/invoice is paid upon receipt. Continue to provide service for other projects and services. The process is the same for each and every project. Most importantly, we partner with You, so that You can focus on your core competencies.

27 Some more reasons to choose us …
Focused procurement training’s conducted by those who have been involved with procurement for many years, and adhere to the strictest procedures, policies, ethics, and systematic ways. We continue to participate in regular and on-going training in all areas via conference call, webinar, in-person, and in the field. Only those who understand people and care about people first above all other areas are selected. Each of us agrees to share and follow the ethics, commitments, quality, customer service, honesty, integrity, and values of ATSPG. Each of us has a defined and exclusive territory so that we can provide world class service to you for the long-term.

28 Some more reasons to choose us … (continued)
Our best practices, SOPs, sales and marketing tools, training, class room training, communication, customer relations management, targeted buyers, and a host of many other areas are the most comprehensive and real so that we can be here to support you in your business for the years to come. We agree to adhere to the highest ethical and performance standards. We have access to latest and best services, techniques, and products. Our professional, easy to follow, and simple brochure, website, and all other documents educate and inform so that you have a complete understanding of what we do and how we can benefit you.

29 Some more reasons to choose us … (continued)
Our company offers PERSONALIZE SERVICED to you at all levels during our first meeting, as we provide our no cost assessment, from the beginning of the procurement project to the end, after the project, with new projects, and for years to come. Question and answers are available via website, phone call, , and in-person by your procurement professional. Our entire sales, procurement, services, and support are step-by-step and understandable for your maximum results. We do not pressure sell and will not try to get a sale for our benefit. We only want to work with those we can truly help.

30 Services and Products Offered
Procurement Outsourcing Cost reduction, Request for Proposals, and cost analysis Procurement Management Hiring, staff training, and development Compliance Staff oversight Tracking tools for effective management and outcomes Procurement Fundamentals Compliance and Best Practice Contracts, Subcontracts, Agreements Request for Proposals Centralized buying power

31 Services and Products Offered (continued)
Procurement Fundamentals (continued) Standard Operating Procedure creation and implementation Software implementation Project Management Training Procurement Budget Management Resource management Budget preparation Budget tracking

32 Services and Products (continued)
Green Procurement Green understanding, costs, and Federal requirements (what is required and what is not) Procurement Standard Operating Procedures (SOPs) Creation Revision Organization Compliance Best practice creation, implementation, and adherence Cross departmental input, understanding, solution, and implementation

33 Services and Products (continued)
Procurement Audit & Contract Purchasing System Review (CPSR) Financial Program integrity SOP Federal ISO Note: All areas, with the exception of Procurement Outsourcing, may not be offered by all Franchisee areas.

34 Contact Information (410) Office (410) Fax All information contained in this is © by Above the Standard Procurement Group, Inc. and ATSPG Franchising, Inc., 2009, 2010

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