New Business
Startup Program
Profitability Consultants has developed a program
for new business startups where the benchmarking of current costs
and contingency based services are unrealistic. We feel that this
program more closely matches the needs and resources of a startup
business but still enables them to take advantage of the cost and
time saving benefits that result from our services.
The fee for this service is determined by the
size and nature of the business and the number of expense categories
reviewed. A fee will be quoted following the initial fact finding
interview. Fees are payable as follows:
| • |
50% at agreement signing |
| • |
The remainder after presentation of
recommendations |
Profitability Consultants will continue to work
with the new startup until they are satisfied with the suppliers
in each category. We also offer an optional retainer agreement that
enables us to support the new startup with any supply chain management
needs.
The New Business Startup Program operates as follows:
| • |
There is an initial
interview (which can be done via telephone). During this interview,
we gather specific information regarding the startup such
as the materials, products and services that are needed, projected
usage, expected growth rates and payment terms required. |
| • |
Profitability Consultants
calculates the fee and designs a plan of action. |
| • |
Client agreement
is signed, 50% of fee is paid and work is started. |
| • |
Profitability Consultants
identifies needs, contacts appropriate suppliers, and performs
supplier quality assessments and onsite audits (if necessary). |
| • |
Supplier contracts
and/or agreements are then negotiated on the clients' behalf. |
| • |
Profitability Consultants
t hen provides the client with: |
| |
1. the list of Profitability
Consultants Certified Suppliers for each expense category
including contact name and phone number
2. the negotiated pricing
and terms from each supplier
3. specific recommendations
as to which suppliers to use and
4. any other relevant
information such as delivery terms, etc. |
| • |
Meetings with chosen
suppliers are then set up, introductions made, questions answered
and relationships established. |
| • |
Remainder of fee is paid. |
Client is responsible for maintaining supplier
relationship, order placement and supplier payment. Profitability
Consultants will continue to work with client until client is satisfied
with a supplier for each category reviewed.
|
Action |
Profitability
Consultants |
Client |
| Initial interview with management
and Profitability Consultants |
X |
X |
| Fee calculation and plan of action |
X |
|
| Agreement signed and 50% of fee
paid |
|
X |
| Identify needs, suppliers and perform
assessments |
X |
|
| Negotiate agreements |
X |
|
| Present recommendations |
X |
|
| Meet with suppliers |
X |
X |
| Pay remainder of fee |
|
X |
| Collect cost savings |
|
X |
An optional retainer agreement is available from
Profitability Consultants which enables us to support the new startup
with any supply chain management needs.
|
