LOUISVILLE, Ky., June 13, 2019 /PRNewswire-PRWeb/ -- Alliance Cost Containment, LLC (ACC) secured $5.8M in savings over the last 12 months for a long-term client in the healthcare space. The $5.8M in savings is in addition to $17.6M saved over the course of a 5-year partnership, bringing total realized bottom line improvement to $23.4M.
With an acquisition in Q4 2019, the client increased their Fortune 500 status in the healthcare industry. The addition of the purchasing department from the acquisition brought procurement spend from both enterprises into a higher pricing tier, enabling ACC to achieve greater savings across reviewed categories. ACC reduced the engaged indirect expense categories by 29% for the combined organizations.
Indirect expense categories reviewed in this engagement include: Wireline Telecommunications ($1.9M saved); Wireless Telecommunications ($1.1M saved); Print Materials ($1.5M Saved); Travel Services ($.5M saved); Mail Services ($.8M saved). For the Telecommunications category, this is the third successful savings achievement in five years.
"The most significant components of these successes are the client's C-Suite / Procurement teams' commitment to creating efficiencies and outstanding teamwork between the client and ACC," said John Singerman, Senior Vice President at ACC. "Both of these crucial basics have been present since we started with this client five years ago, meaning 90%+ of identified savings are realized directly on the client's bottom line. That's something you won't find elsewhere in the industry."
ACC continuously validates realized cost savings on a monthly basis. Ongoing spend audits identify savings opportunities, and highlight due credits, rebates, price increases and erroneous billing in negotiated pricing. ACC's online portal, Dash, is the hub where clients can transparently view their monthly audit, get an inside look across departments, locations, vendors and much more. Through continuous auditing and vendor accountability, ACC consistently improves and validates accurate pricing.
"One major advantage of our indirect spend process is the continuous ability to track and improve," said Miles Lee, CEO at ACC. "Indirect cost reduction is not a one-time exercise. For private equity firms or large organizations serious about cost efficiencies, indirect procurement must be an on-going process. Anyone who views the year-over-year success of this particular client can see the benefit."
ABOUT ALLIANCE COST CONTAINMENT
Louisville-based Alliance Cost Containment (ACC) helps corporations, private equity sponsors and their portfolio companies enhance profitability and strategic competitiveness by reducing spend in 35 indirect expense categories. ACC's approach instills institutional behavioral change and adherence to best practices, as well as provides intelligence to improve forecasting. The company also creates and manages marketplace environments for private equity portfolios and franchise organizations requiring a group savings or GPO structure. ACC is the recipient of numerous awards, including: Business of the Year from Louisville Business First, the GLI Inc.Credible Award, the Best Places to Work award 3 years running, the Inc.5000 Fastest Growing Small Business award and more.
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SOURCE Alliance Cost Containment, LLC
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