ERA provides cost management services to help clients reduce expenses and boost profits. As the world's largest cost management specialist, ERA has over 1,000 associates in 29 countries who can help clients across industries. ERA analyzes a client's spending, benchmarks it against other companies, negotiates better rates and terms with suppliers, and implements changes, typically achieving savings of 5-20% within 6-10 weeks. ERA only charges contingency fees based on 50% of actual savings achieved, so clients keep 100% of savings with no risk if none are found.
1. A Presentation showing:
The benefits of working
with
Expense Reduction Analysts
By Tony Catling
Expense Reduction Analysts
15 Waine Close
Buckingham
MK18 1FF
Tel: 01280-817435
a.catling@erauk.net
2. Who are Expense Reduction Analysts?
We help CEO’s save money and boost profits
when others are unable to.
• World’s & UK’s largest Cost Management Specialist with over 1000
associates in 29 countries.
• 160 Associates in the UK selected to cover a complete range of industry
and functional backgrounds
• Over 2,000 UK clients including NHSBT, Lombok, Zavvi, Towergate,
Volkswagen UK, Pilkington Glass, Harrow School, Burger King, Hilton
Hotels, Pizza Hut & Paul Smith
• Intranet – Gives best in class suppliers of all goods and services as of
yesterday, includes service levels, price, attitude and more
• >£300 million influenced expenditure:
You can be confident with the World’s and the U.K.’s
3. Largest Specialised Cost Managers
What are the main benefits ERA provide for their Clients?
• An Increased bottom line profit… Will be achieved following
implementation.
• Time … Once engaged we take up very little of your time or that of your
team – but they will feel involved and informed.
• Relationships … The general breadth of experience within ERA is vast
and our ability to call on people with very specific industrial backgrounds is
our strength. These people will be at your disposal, all supported by
sophisticated IT systems.
• Speed…Typically you will be enjoying the savings, and increased
profits within a 6-10 week timescale from project start to
implementation.
“For some companies, a 5% reduction in operating costs would put more
on their bottom line than a 25% increase in business”
- The Future Foundation -
At ERA we work with our Clients to Increase Profits.
4. How does ERA achieve this?
Signed Agreement
& agree Project Plan
On-going review
for 12-36 months
Collect Invoices,
Stakeholder meeting &
Agree Requirements
Quarterly or Monthly
Post Audits
Assist in Produce and Agree
Implementation Benchmark Report
Agree Implementation Tender to Suppliers
Process
Produce and Agree Analyse Tender
Recommendation Responses
Report
ERA’s current actual average savings in the top 5 key
areas in all Industries
5. 1 Office Supplies: 3 Logistics & Distribution:
- Stationery 27.4% - UK Parcel Deliveries
- Print 34.6% - UK Freight
- Document Production (incl. 43.0% - International Parcel Deliver
Photocopiers) - International Freight
- IT Consumables 24.5%
- Postage 16.1% 4 Banking:
- Bank Charges
2 Property: - Cash Processing & Cash Ha
- Insurance 17.0% - Merchant Cards
- Communications 25.3%
- Utilities (Gas) 16.5% 5 Industrial:
- Utilities (Electricity) 13.9% - PPE
- Utilities (Water) 30.0% - Chemicals
- Business Rates 6.7% - Gases
- Packaging
- Engineering Consumables
Plus over 100 other categories……..
6. How does the process work with our current
suppliers?
• Good suppliers benefit hugely from the additional business they will get
from being on the ERA database
• The aggregated purchasing opportunity we offer suppliers means we can
achieve great prices and help the suppliers business
• Incumbent suppliers are always involved in the process
• On over 50% of assignments we secure significant savings from
incumbent suppliers who retain the business
• We do not work for any suppliers – ‘ERA’ are completely independent
and work solely in the interests of our Clients
• We never accept fees, payments or commissions from suppliers Our only
income is from our clients. All our dealings are totally transparent
A true ‘Win – Win’ Situation with no risk, 100% ‘return on
Investment’ and no additional funding required!
How do you charge for your services?
7. • We usually work on a contingency fee. This means that if we find no
savings you pay us no fee. We share any savings with you 50:50.
• For contingency fee projects, we raise our first invoice when the
recommendation report has been agreed, at 15% of the annual
savings forecast. A further 10% of annual forecasted savings is due
once the project has been fully implemented. These are paid as
rebateable fees.
• For a 24 month contingency fee project your savings will exceed the
initial fees in just 4 months
• We produce a quarterly report auditing your spend and making sure
the supplier is invoicing you correctly and providing service levels as
agreed. It will also show you how much you have actually saved in the
quarter
• For contingency fee projects we then raise an invoice based on 50%
of these actual savings and then deduct a proportion of the initial fees
so that at the end of the term you will have only paid us 50% of your
real, auditable savings
• After the end of the term, you keep 100% of the savings.
What sort of experience can we expect?
8. • In 90% of engagements, ERA find savings
• Financially, the average saving is nearly 20%, the highest over
500%!!
• The pre-agreed success criteria ensures no wasted effort
• We always safeguard your confidentiality
• You choose the supplier from our recommendations
• The quality of your purchases and service levels are not compromised
Let ERA do the work whilst you and your staff use your time
more effectively concentrating on your business!
10. Can you summarise the main features and benefits of
being an ERA client?
• Immediate Extra profit - on implementation.
• Contingency Fee - The fees are funded from savings - at no cost to
you and No savings = No fee
• Free overhead expenditure health check – with independent
confirmation that you are buying at best levels
• Additional specialist staff - without the headcount or the obligations
and you can release internal resources for core activities
• The Benchmark Report - ensures no reduction in quality, service or
delivery. We also check for historic overcharges and arrange credit
notes.
• Success Criteria - mutually agreed, to ensure no wasted effort.
• ERA manages each category - for 12 to 36 Months following
implementation, depending on the category, ensuring prices and
service levels stay as agreed
• Actual savings are shared equally – backed up by quarterly savings
reports with a full audit trail
• You keep 100% of the savings – at the end of the term.
• You will also have expert knowledge of what discounts can be
achieved.
You have everything to gain and nothing to lose as there
are only Advantages for your business as clients of ERA.
