The Cost Management Challenge
Unmeasured overspends are eroding corporate profits in the large majority of organizations today.
In a perfect world, your company's general administration and non-core costs would be fully optimized and tightly controlled. Every dollar of expenditure adds value; you receive best possible price from every supplier in every cost category. Cost-effective management systems are in place to monitor cost performance and identify further opportunities to reduce the cost of doing business.
In reality, most companies fall short of this ideal scenario. While core costs may be under control, non-core costs generally receive less attention. Many companies end up overpaying by as much as 65% - 75% on peripheral spends. The reason - they often lack is the time and expertise to track and control these costs.
The nature of non-core spend, or ‘indirects’, means that your in-house procurement team faces an almost impossible challenge.
- Hundreds of categories all requiring deep knowledge on efficient procurement practices.
- Numerous stakeholders all with knowledge of their area but little specialized procurement insight.
- Hundreds of suppliers all selling to organizations with great skill and determination.
Partnering with PMA Canada offers companies a real solutions. PMA Canada specialists know where to look for overcharges. With our market expertise and focused resources, we are able to identify and deliver savings in a short period of time. On average, we can help companies reduce their costs by 45% by obtaining better value and performance from their suppliers. Our services are independent, objective and risk free. To ensure a win - win outcome, we work on a success fee basis ensuring that you receive the best value for your product or service, with minimal time invested from your side.