Arrowhead Associates Process
Overview
The first step is to get an overview of your company. We would like to get a good understanding of your company operations, your history, what products and services you provide and understand well your goals and objectives.
Data Collection
We then proceed to collect your expense data, either via archived paper invoices or a data download for a given time-period – typically a year. The data will subsequently be categorized by commodity and supplier to produce a Spend Report, including category summaries, as well as in-depth spend patterns.
Analysis and Recommendations
The expense categories are then analyzed and areas where significant cost savings can be achieved are identified. A written set of recommendations with suggested strategies, project ideas and cost savings estimates is then presented. At this point, after reviewing the recommendations, you may elect to continue with the process and implement the cost saving recommendations, or alternatively, you may choose to not proceed further, in which case, it is the end of our engagement and no fee applies.
Implementation
Once we have mutually agreed on what cost savings projects to pursue and their priority, we will put in motion strategies to achieve the cost reductions. We will organize periodic meetings and up-dates to advise company management of progress in the implementation, obtain approval on pending sourcing decisions, as well as to brief company management on final results of completed projects.
Non Disclosure
All the information that we exchange will remain strictly confidential. We will provide you with a letter of engagement and a signed confidentiality and non-disclosure agreement at our kick-off meeting. Additionally, we will adhere to the highest ethical standards with any and all interactions with Suppliers.
Fee
We operate on a contingency basis, with no up-front fees. Upon implementation, the fee is PROCESS_FEE of every dollar saved over a 12-month period, billed monthly. If there are no cost savings achieved, there is no fee. After that period, 100% of the savings stay with your company.