THINK OUTSIDE THE BOX AND CUT COSTS

• Reduce expenses by eliminating unnecessary positions
• Save on payroll, benefit packages and job training
• Reduce General Liability by taking your employees off the road
• Reduce overall insurance costs by shifting liability
• Use companies that specialize in around the clock service, 24/7/365-this saves on overtime, vacations, sick time and special scheduling headaches
• Increase productivity by focusing on what you do best and save on employee time wasted by being out of the office
• You only pay for what you need when you need it
• No more fleet management headaches and costly auto maintenance and repair bills
• Reduce auto insurance liability which also reduces or eliminates the need for auto insurance

According to the AMA, the top 3 reasons for outsourcing are:  

1. Reduce Costs
2. Save Time
3. Improve Quality  

While outsourcing can be beneficial, it can fall short of results if critical steps are not followed.  According to Greaver, there are 7 steps that can set you up for success.  He elaborates in more detail in the book, Strategic Outsourcing, but here is the abbreviated version.

1. Plan the outsourcing initiative
2. Explore the strategic implications
3. Analyze the costs and performance
4. Select a provider
5. Negotiate the terms
6. Transition the resources
7. Manage the new relationship 

One point he stressed is to be sure to consider the activity-based costing (ABC) perspective.  This method helps to investigate all associated costs so that the true existing cost is being used when considering projected costs as well as measuring existing and projected performance.  Once you move through steps 1 - 3 then 4 becomes an easier decision.  If the right choice is made in step number 4 (selecting the right provider) then steps 5 - 7 become smoother and you are on your way to building a strategic partner that can help you "gain access to the expertise and technologies of other companies; improve profits through economy of scale and shared costs; and to increase flexibility by adding new provider capacity when demand surges, and then reducing it when demand slackens."

Lena Flores
CEO
CitySprint 1.800.DELIVER®
214.871.2300

Hidden Value - Good Vendor Relations

 
All businesses have at least 4 sets of stakeholders:
 
     1.  Client
     2.  Employees
     3.  Vendors
     4.  Owners/Investors
 
Have you asked yourself lately how good are your relations with your vendors?