Scroll down for answers to 7 frequently asked questions (FAQs) about cost reduction services. 

Can we do this on our own?

Many companies try, but are unable to match the results that a professional cost management firm like Peak can provide in savings, quality, and service. Most of this comes down to extensive cost category experience and process.  Businesses and organizations have limited internal resources, time, and expertise. Strategic sourcing starts with a thorough and in-depth analysis of data.  This data may come from different internal sources and may include multiple invoices from multiple providers.  Very few organizations do the necessary analysis to set the foundation for an effective cost management project.  Not to mention the market research and in-depth supplier negotiations that must take place. Further, we have the ability to leverage the collective purchasing power of our clients to obtain better pricing than any one company can get on their own. When the total savings, time, and resources are accounted for, the ROI in outsourcing expense reduction efforts just makes sense.

Will you cause internal disruptions by changing our process and vendors?

Many clients are apprehensive about involving an outside consultant with sensitive vendor relationships, systems, or products.  Executives have often been through a poorly run implementation or have not experienced promised savings after spending time and money changing vendors.  We understand this and make reducing any of these impacts a top priority. If a vendor or relationship change is being considered, we always address the expected impact on workflow during implementation.  We also help run the implementation process to ensure a smooth transition. 

Most clients never experience any significant disruptions and many actually see workflow improvements after Peak is finished.  The solutions we recommend are custom to your business and your needs are always considered above price. 

What if we demand high service levels and premium products?

We get this question quite often.  Cost management and strategic purchasing is not about buying cheap products and services.  Our strategic purchasing process was designed to help you obtain the best price for goods and services that meet or exceed your needs. If you demand private corporate jets for travel, we will ensure you receive the best price.  If you demand the lowest cost budget airline, we will also ensure you receive the best price.

In short, we do not recommend cheap products and services.  We help you get the best price on what you need or want.

How much time do we have to commit to this process?

Your time is very valuable and we are always acutely aware of this. Your time commitment will be minimal in comparison to a typical consulting engagement. We will only involve you at critical junctures when decisions are to be made. We present pertinent information so that you can make your decision quickly and effectively.

During the course of the engagement, your time will be limited to a few  hours. One of our clients started saving $24,000+ per year after investing about 10 hours. That works out to the equivalent of about $2,500 per hour! Other clients have experienced over $10,000 per hour invested.

Will we have to change vendors to realize savings?

No. Your current vendor and service provider relationships are always included in our analysis and usually a change is not necessary to experience savings. We will only consider alternative vendors if you are open to a change in that particular area. Even in areas where you do not wish to change, we can find savings. We understand that change can be costly and part of our job is to make any needed change as painless as possible. 

Will my Purchasing Department or other stakeholders be upset?

We adopt a team philosophy with your entire organization from the beginning stages of our engagement. We understand the critical role your Purchasing Department and other key individuals play in the success of a cost management project.

We work closely with them to obtain buy-in on the process and understand the needs of everyone involved.  We also work through them to obtain the necessary documentation and information we need to complete our analysis. We share our knowledge with them whenever possible to ensure the savings we find are sustainable.

In our experience, after a team understands the process, they are very receptive as our role enables them to focus on the other important projects and initiatives while still being involved in the process.  When the results are laid out objectively, most appreciate the honest and unbiased approach and fully support the process.

How are the savings and fees determined?

Our fee is 100% performance based and is calculated as a percentage of savings and/or rebates we deliver. Savings are audited and you will only be invoiced for actual savings. There are no gimmicks and no hidden fees.