In a competitive economic environment cost reduction is often the only way in which organisations can improve financial performance.
Proven track record
We have a proven track record of reducing our clients’ costs. Reductions are usually in the region of 20% to 40% and impact directly on the bottom line, normally immediately.
Improved cost management
Clients can also use our results to revise budgeted expenditure downwards. In this way our appointment has a positive impact
AA Global Sourcing is one of the UK’s leading providers of tactical cost reduction.
We work for large and medium sized organisations in both the private and public sectors, such as yours.
Our speciality
We specialise in increasing your profits, or freeing up your resources, by reducing the costs of the goods and services that you buy.
Our record
Our staff have a proven track record of producing genuine, sustainable and long-term cost reduction which we can demonstrate to you.
Our cost
Our fees are calculated as a percentage of the cost reduction identified. This means that there is no cost to you if we do not identify any such reductions, ensuring real value-for-money.
Your opportunity
Our service provides a genuine opportunity with significant potential for a direct impact on your costs.
The main areas of expenditure on which we work tend to be indirect costs. This is because, in our experience, these usually have the greatest potential for cost reduction; however we frequently identify cost reductions from clients’ direct inputs, such as engineering supplies and raw materials, as well.
Examples of indirect categories that we are asked to address most often include:
• IT
• Recruitment
• General stationery
• IT consumables
• IT Equipments
• Leasing/financing
• Marketing
• Packaging
• Photocopying/reproduction
• Print/printing
• Printed stationery
• Protective clothing/equipment
• Security
• telecoms (fixed line, mobile)
• Temporary/agency staff
• Training
• Uniforms
Please note that this list is not exhaustive. We consider any areas of recurrent expenditure except wages and salaries.
We adopt a consultative approach to all of our assignments, discussing and agreeing major decisions with you at every step of the process primarily through regular progress meetings.
In this way we identify cost reductions which are genuinely consistent with your needs, and thus have your full approval.
Our fees are calculated as a percentage of the cost reduction identified. This means that there is no cost to you if we do not identify any such reductions, ensuring real value-for-money.
Level of billing
Our fees are 40% of the cost reduction identified in the ‘relevant period’. If you choose to implement this cost reduction, these fees are then adjusted during the relevant period to reflect your actual reductions based on quarterly reconciliations of your actual spend. This ensures that you are capturing properly the cost reduction that we have identified for you.
The relevant period
In most cases this is twelve months (the exceptions being telecoms and any new or revised contracts that we propose that have duration of greater than twelve months).
Basis of cost reduction
Our contract clearly defines ‘cost reduction’. This prevents disagreement or confusion over billing.
We support all invoices with detailed and clearly set out calculations that you can easily check.
If you would like to learn more about how we can reduce your organisation’s costs, please fill in your details below.
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