ERA Presentation
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ERA is an expense reduction consulting firm that has helped over 14,000 clients globally reduce expenses by an average of 19.7%. They work on a contingent fee basis, only earning a fee if they achieve measurable savings for the client. Their process involves analyzing a client's expenses over 6-8 weeks, defining options to reduce expenses over another 6-8 weeks, and then implementing solutions and monitoring for 24 months. ERA has expertise across many expense categories and a proven track record of success with many large clients across diverse industries. Their goal is to help clients reduce expenses through more cost-effective suppliers and processes, with no fee charged if no savings are achieved.
ERA Presentation
- 1. Working together to find extra profit Richard Ungaro - Director 407-276-5312
- 2. Why Focus on Overhead? • Current economic conditions are presenting challenges for all companies in all industries • Expense reduction is easier than increasing sales • Saving One-Dollar of expense has the same impact as increasing revenue greater than $10 in most companies • Expense reduction improves your ability to compete • Expense reduction can be an alternative to headcount reductions
- 3. Who is ERA? • Established in 1992 • Over 14,000 projects completed world- wide in more than 30 countries • Average cost savings across all expense categories is 19.7%. • Focus on non-core operating expenses; savings goes directly to the bottom-line • No savings – absolutely no fee • Work on a no-risk, contingent fee basis; fee is derived from the measured savings that the client receives Demonstrated Experience and Results
- 4. Some Key Clients Broad Industry Experience
- 5. When to Consider Outsourcing Low - Savings Potential - High Higher return Requires little effort/expertise Do internally? Outsource? Lower return Requires high effort/expertise Low - Time/Effort/Expertise Required - High
- 6. Expense Categories Logistics Supplies • Small Package Freight • Chemical • Domestic Freight • Cleaning • International Freight • Food Services Insurance • Lab and Medical • General/Worker’s Comp • MRO/Factory • Health Consumables • Packaging and Shipping Services • Printing • Equipment Maintenance • Stationery and Office • Janitorial Services • Payroll Processing Telecommunications • Printing • Data • Records Management • Mobile • Temporary Labor • Uniforms • Voice • Waste Management Merchant Card Fees Leasing
- 7. How We Do It Analyze Define Options Implement 6-8 weeks 6-8 weeks & Monitor per category 24 months per category per category Process: Complete analysis of Select and manage suppliers Implement solutions, business and requirements with recommendations measure and monitor ongoing Activities: • Define scope • Identify Potential • Negotiate Supply Agreement • Obtain data Suppliers • Implement recommendation • Understand data • Benchmark to database • Monitor supplier compliance for • Know requirements • Test the Market (RFP) 24-months • Benchmark to database • Analyze the data Deliverables: • Baseline Report • Recommendation • Implement & Compliance Report review
- 8. Working Together No savings = No fee Expense Reduction Analysts Our Clients • Analyze the client’s current costs and service • Allow ERA to present a successful environment recommendation and earn a share of the savings • Identify and help implement hard-dollar savings during the subsequent Review Period options for our clients utilizing our: • Provide timely access to information • proprietary process • Have the sole right to select which of the • expert resources successful recommendations is the best fit for themselves • benchmark pricing data • Provide post-implementation support services • Implement successful recommendations for an expense category within 30 days of throughout the review period Recommendation Report presentation • Operate with integrity and respect for our client’s personnel and supplier relationships • Do not solicit any offers from suppliers or duplicate ERA’s work, and refer all unsolicited A successful recommendation is: inquiries or offers from suppliers to ERA 1. A lower cost solution from an incumbent supplier(s); and/or 2. A lower cost solution with savings above an agreed to minimum, from a non-incumbent supplier who provides equal or greater products/service/quality; and/or 3. A solution from a non-incumbent supplier that our client elects to implement even though it does not meet the criteria above; and/or 4. Provides savings realized from approved changes in methodologies or process
- 9. No savings, no fee “You guys have done what I’ve been trying to do for three years, but couldn’t. Either I didn’t have the time, or the energy, or the expertise.” Senior Vice President/ General Manager, Gleason Industries