That's very interesting...
Over time, the depth of expenses incurred by growing businesses tends to take on a life of their own.
From information technology to LTL freight, or MRO supplies, to food and uniforms, it takes resources to procure and manage products and services to keep businesses operational.
Expense Reduction Analysts is a 25+ year old international consultancy that has the knowledge and resources to help manage "tail spend", that 20% of indirect expenses that all businesses have.
Omar Sabouni Ph.D. is a local consultant to ERA and understands business operations, expenses, and how to work with suppliers.
"I personally help businesses and non-profits to reduce their expenses by evaluating current spending patterns using our benchmark data. Our category experts evaluate alternative solutions and options. If business owners and executives like those options, we help implement and monitor changes," Sabouni said.
The business model for ERA is unique in that they aren't paid for their services until they save the company money. As a result, Sabouni said, "Our services are self-funding," meaning that they are paid not from the general budget, but from the cost savings they generate.
"I have no reservations telling prospective clients that the worst thing that can happen if they engage with us, is that we can prove for free whether they are paying competitive market rates for the products and services they buy," Sabouni said.
They provide services in over 40 categories looking at expenses like banking and financial (insurance, credit), advertising, copy supplies, facility management, energy/waste, IT expenses, medical supplies, chemicals, consumables; HR admin uniforms, linens, and much more.
Sabouni said that some of their best customers can be non-profit organizations where ERA will allow them to focus more of their resources into fulfilling their mission; Professional and medical service firms who need to save on everything from medical supplies to copiers; and finally manufacturing companies seeking cost savings in everything from insurance to industrial gases.
"Cost optimization is something that all businesses should do diligently, and all business owners should have a continual focus on cost reduction, rather than just limiting cost increases."