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- We have used consulting firms before. What makes PRP any different?
Clients engage Profit Recovery Partners (PRP) to obtain ongoing visibility into their company’s general and administrative (G&A) expenses by tapping into our network of trusted industry experts and more than $2.2 billion in annual managed spend. Our hands-on management process also differs significantly from a traditional consulting firm. We implement client-approved, expense reduction solutions and manage every program effectively throughout the term of our engagement. Many of our competitors only make recommendations; their business model does not include staff to validate vendor compliance and manage the savings programs. Finally, we base our fees solely on client savings. There are no out-of-pocket expenses, so our engagements are essentially risk-free to our clients.
- Why can’t we just do this ourselves?
Our clients tell us we accomplish things they could not with their own bench of resources and talent. Companies typically have limited staff, many of whom have multiple responsibilities, making it challenging to prioritize general and administrative (G&A) expense reduction projects. Plus, most procurement functions are limited in that they have only their own company’s purchasing leverage upon which to rely when they negotiate. PRP has multiple teams of experienced analysts and industry experts who use their unique knowledge and experience, together with proprietary time-tested methodologies, to create innovative expense reduction solutions. PRP’s annual managed spend is more than $2.2 billion strong, enabling us to secure the best pricing, contractual terms and conditions and service level agreements for our clients. This is our core competency.
- How much of my time is required to complete a project? How much of my staff’s time?
Your time commitment will be minimal compared with a typical consulting engagement. During the initial kick-off meeting and on-site visit — typically spanning one to four days — we will meet with all of the client stakeholders to ensure that our Strategy Development Team gets to know your staff, the status of your current vendor relationships and your objectives for the project and collect the data needed for the analysis. During the 60- to 120-day review period, we conduct periodic conference calls to discuss strategy and our progress. Once our analyses and negotiations are complete, we will present a detailed report containing findings and recommendations for your approval, then implement the options you select.
- Will our service levels suffer after you have reduced our current vendors’ margins?
Absolutely not. In fact, service levels usually improve. PRP recognizes that service often is as important as realizing cost savings. We understand that all vendors must make a profit, and we ensure they provide a fair price. PRP’s client base represents hundreds of millions of dollars in annual revenue for many of your current vendors. Subsequently, these vendors have a strong incentive to maintain the highest level of customer service, as they recognize PRP’s more than $2.2 billion in annual managed spend and respect our expansive client portfolio. It’s a team approach.
- Who are some of your clients and why did they hire you?
We have conducted more than 1,200 client engagements since our inception in 1997. Our clients range from FORTUNE 1000 corporations to Am Law 200 law firms to private companies to private equity firms. Because our focus is on administrative expenses, our services and expertise is applicable to many types of businesses. Learn why several of them consider PRP a MVP.
- How much money can my company expect to save?
Clients have taught us that no two engagements are alike, so PRP can’t predict individual savings without any data. However, we would be happy to provide a pre-engagement Comprehensive Review™ that will quantify the savings that we can deliver. You also can use our online calculator to estimate the average savings and resources needed for your organization to realize savings.
- What are the expense areas you will review?
PRP reviews a wide range of G&A spends within your company to maximize savings. PRP clients benefit from expense area expertise across eight industry areas.
- Does PRP represent specific vendors?
No. PRP identifies hard dollar costs savings across multiple suppliers. We do not represent or receive any compensation from any vendors. We will work with your vendors and provide other comparable options for home run-worthy savings opportunities.
- How is PRP compensated?
PRP is in partnership with you. As such, we’ve structured our fees to reflect our partnership. We charge performance-based fees and billing begins only after client-approved savings are implemented. We assume 100 percent of the risk for identifying expense reduction opportunities. If there are no savings, there are no fees. Most of our clients rally behind this risk-free approach.
- What industries do you serve?
We have extensive experience and expertise in working with the legal, private equity, healthcare, retail, financial, insurance, manufacturing, information technology, education and real estate markets. Because all companies spend money on back office expenses, our services are beneficial across most client industries.
- How does my company decide to formally engage with PRP?
Before a formal engagement, PRP will provide a Comprehensive Review™ to assess pricing and the savings opportunity of working together. During this pre-engagement review, PRP will conduct a savings analysis, vendor contract observations, labor resource assessment and competitive benchmarking. At the conclusion of this process, you decide if you would like to engage PRP to obtain the savings. Most clients find that PRP delivers not only a cost savings analysis but also insight into their procurement processes and visibility into their operational spend, which ensures long-term sustained savings.
- We’ve been tasked with generating and sustaining material contributions to EBITDA growth. Can PRP help?
Yes. Many PRP clients tie the cost savings we generate for them to their P&L to measure a direct connection between supplier spend management and EBITDA increases. During the pre-engagement Comprehensive Review™, we create a scorecard for our implementation plan with clear objectives, timetables and accountability procedures.