Our five step cost management control process is a non-exposure service that determines where your dollars are being unnecessarily spent. We identify major savings opportunities for you by using a proven, logical sequence.
Nuzzo Resources can guarantee this fine-tuning process because:
- We have the necessary tools to handle vast amounts of data – your data – efficiently
- Since 1994 we have continued to develop our very comprehensive cross-referencing database
- Our experience and intimate knowledge of complex pricing models empowers our clients to understand their supplier’s profitability in the relationship.
Our Five Step Process
Data Acquisition
Once the expense area to be fine tuned is determined, Nuzzo Resources gathers all the information available on how you utilize that particular supplier(s). The beauty of this step of the process is we can gather all the data we need for our analysis directly from your supplier. Even when working on site, we require little interaction with your staff. If questions do surface during the data acquisition phase, we strive to keep your time involvement to a bare minimum.
Model Creation
When all the data is acquired, Nuzzo Resources prepares an electronic file with all the client information. This model reflects how you are currently using the identified services and vendors. Ideally, we create the model based on two years of data. We can create a model that covers a lesser time frame, if the data is representative. The model contains all the information – what you currently have in place, what you are currently paying and what you should be paying
Model Testing
Now that we have a model containing all your information, we can calculate statistical patterns and cycles. We also pinpoint ‘hot spots’, such as overcharges, excessively complex invoices, duplicate payments and inconsistencies with line-item prices over a period of time.
We also test the model against two major areas: our huge database files and the marketplace. Our clients enjoy our ability to cross-reference their expense model with hundreds of similar models and thousands of line items contained in the Nuzzo Resources databases. Our clients also like our ability to renegotiate agreements or propose an alternative supplier or provider.
Implementation
Once we have identified and modeled the possible cost savings, our clients decide whether to implement them or not. We provide our clients with all information and specific projections on what kinds of savings they can expect.
With Nuzzo Resources fine-tuning each detail, our clients can anticipate reduced operating costs, which will ultimately benefit the bottom line. That is why our clients implement our cost savings recommendations.
Savings Monitoring
During this step of the process we do everything in reverse. We analyze each transaction you make every month. We take your old rates and compare them to the new fully optimized rates and then calculate the exact delta of savings. As a by-product of the monitoring process, we audit all invoices for accuracy and when supplier pricing errors are discovered it is incumbent upon Nuzzo Resources to correct them.