Results
Our Results Speak for Themselves
We can save you money in three ways:
- Create Future Savings – RAS renegotiates contracts…usually with your current vendor…to create value-added contracts using our proprietary data: Our industry-specific experts compare your current contract for goods or services to our constantly updated, proprietary national database of best-in-class rates and contract requirements and use those facts to renegotiate the best prices and contract provisions for you.
- Identify Operational and Process Efficiencies – RAS improves operational systems: Our expert consultation provides insight and recommendations on opportunities to operate in a more cost-effective and efficient manner.
- Recover Unknown Losses – RAS uncovers erroneous charges: Our auditors identify, document and upon your approval, recover prior years’ overcharges, unpaid rebates, outstanding credits, unclaimed property, and billing errors.
Our technical teams have first-hand expertise in the industries and specific fields they examine, with many team members having 20-plus years’ operational experience. As experts with insider knowledge, and with our ability to benchmark your current contract terms, conditions, and costs against best-in-class pricing, RAS can get the best deal for you.
We know that money talks…and we speak its language! Following are just a few examples of financial savings, operational efficiencies and process redesign, and productivity and data information improvements RAS’ expert teams have achieved for government and business clients.
Spend Category | Range of Savings |
---|---|
Telecom / Data | 7% – 63% |
Copiers | 30% – 45% |
Waste | 28% – 33% |
Medical Waste (typical savings) | 30 – 40% |
Utilities | 7% – 10% |
Real Estate, Facilities, and Maintenance | 15% – 25% |
IT (Hardware, Software, Services) | 10% – 18% |
Temporary Labor and Professional Services | 8% – 15% |
Insurance (Health and Non-Health) | 7% – 12% |
Logistics (Parcel, Road, Ocean and Air) | 8% – 12% |
Fleet & Fleet Maintenance | 9% – 17% |
Office Supplies, Printing, Shop Supplies, Furniture | 12% – 35% |
Travel (Air, Car, Hotel, Policies) | 9% – 25% |
P-Card, Ghost Card, Travel Card Programs | 1% – 3% |
Systems Analysis & Process Improvement
Strategic Operations
Medium-Sized City
Identified $30 million in annual savings (15.7%) through a performance audit conducted within the city’s top nine divisions. We looked at $191 million of external spend to vendors, recommended 35 cost-reduction initiatives to achieve savings and, upon the City’s approval of those recommendations, implemented them on the City’s behalf.
Procurement Redesign
Equipment Company
Reduced lease and facility expenditures for an oil and gas field equipment firm while also establishing a uniform, streamlined company-wide procurement process. While conducting a high-level assessment of the client’s procurement organization, we identified significant redesign opportunities to improve the total procurement system.
The company was unaware of these potential options (i.e., “best practices”) for maximizing performance of the overall procurement process, as its focus had been on improving efficiency at the purchasing task level. We developed a centralized procurement model to leverage purchasing power, information, and skills across divisions. The redesign enabled the client to achieve its original cost reduction goals, as well as to reduce costs and improve productivity by eliminating duplicative work.
Supply Chain Management & Strategic Procurement
Pipe and Parts Distributor
Saved $800,000 annually, increased profits, and reduced procurement costs by 8% for a $100 million company. We rationalized inventory by increasing inventory turnover from 1.5 times to 3 times per year, which increased profit by 50% in 12 months. Closing one nonstrategic inventory location saved $800K per year and negotiating long-term contracts with major suppliers reduced procurement costs by 8%.
Surplus Inventory Reduction
Transportation Company
Saved $19 million annually for a large helicopter operator and repair center. It was holding $400 million in inventory, of which $100 million was determined to be surplus and was reducing cash flow for its repair business.
We identified a strategic partner for supplies inventory and sold $50 million of the surplus inventory in the first 18 months, recouping 80% of its book value. Our team implemented client-approved procedures and training for the company to better manage surplus inventory and brokered large, planned purchases which reduced product costs by 10%. Finally, we outsourced warehousing, finance, and other back-office operations, thereby saving the company $19 million annually.
Energy Cost Reduction & Management Services
State Department of Corrections
Achieved a 10-year cost-reduction of $12.6 million, for net savings of $5.4 million, in water and sewer improvements for the State’s Department of Corrections. As the result of our comprehensive analysis and recommendations, our client invested $7.2 million to right-size components and improve facilities, which resulted in the desired upgrades at significant immediate and long-term operational savings.
Administrative Operations
Copiers/Managed Print Services
State-Wide Contract
Achieved $805,000 annual savings, a 36% cost reduction, in the former cost to our client for its managed print contract. Despite having two years left on the contract, RAS designed and executed for the State a newly renegotiated vendor agreement, with the reduced rates taking effect immediately as soon as our client signed the agreement.
Health Care Sector
Cost-saving initiative in process: Potential cost savings are a minimum of $1.9 million annually, $9.5 million over five years, a savings of 43%. The major copier vendor is providing extensive services to the client, but the value provided is nothing exceptional in the copier/managed print industry. The ratio of cost-to-volume analysis detailed that the major vendor is charging excessively for the services provided. For the vendors providing fewer machines, we found that at least 20% of the current equipment was not optimally deployed. RAS is negotiating a revised pricing structure to achieve the 43% savings goal. Savings for this initiative are expected to increase as additional information is provided.
Telecom & Data
Local Government
Major Southeast City
Achieved total annual savings exceeding $2.3 million (63%) as a result of our on-site line review conducted for our client. We uncovered 3,154 lines and circuits that were broken or unused, recovered prior overcharges, and reduced future costs for unneeded equipment and services. The city saved 63% of former costs for its total lines and circuits with no reduction in necessary services. This allowed the city to reassign three full-time staff to higher priority areas of work. The city also retained our team to continue monitoring its telecom and data bills for accuracy.
Small East Coast County
Saved $495,000 (20.2%) over three years ($165,000 annually) for our client by analyzing and appropriately sizing its land lines, circuits, and cell phone services.
Healthcare Sector
Medium-Sized Southern Hospital
Obtained a credit of over $1.75 million, a 25% annual cost reduction, resulting from the on-site line review we conducted for our client. We discovered and removed telecom services that had been disconnected but not removed from the invoice.
Small Southern Hospital
Saved 62% of telecom spend due to the on-site line review conducted for our client. We renegotiated the existing contracts with the client’s contractor and obtained credits from the contractor for services that had been overpaid. The client saved money while retaining the same level of service with the same contractor it had been using.
Large West Coast Hospital
Saved $2.1 million over three years (37% annually) for our 1,000-bed client. We conducted a comprehensive analysis of all local, long distance, internet, cable, data, cell phones, and pager contracts and then renegotiated existing vendor contracts to achieve best-in-class terms and pricing, which resulted in a 37% annual savings for the life of the new contract. We also recovered past overcharges and deleted unnecessary and non-working lines and circuits.
Waste Management & Bio-Hazard Waste Disposal
Both Public and Private Organizations
Saved upwards of 60% in waste management costs for clients in a wide variety of industries. As shown in the following chart depicting actual savings achieved, those savings include costs for disposal of medical bio-waste, hazardous waste, and solid waste, as well as shredding and recycling.
Initial Annual Cost | Reduced Annual Cost | 1-Year Savings | 3-Year Savings | % Savings |
---|---|---|---|---|
$1,194,552 | $944,376 | $254,165 | $754,517 | 20.9% |
$318,648 | $214,308 | $104,340 | $313,020 | 32.7% |
$115,164 | $65,064 | $50,100 | $150,300 | 43.5% |
$90,576 | $36,000 | $54,576 | $163,728 | 60.3% |
Employee Benefit Programs
Pharmacy Benefits
State Employee Pharmacy Benefit Program
Uncovered, documented, and recovered $5.1 million in hidden, unauthorized administrative fees charged over eighteen months by the State’s Pharmacy Benefit Manager (PBM). We also identified, documented, and recovered $316,475 in PBM overcharges on prescriptions filled for employees and retirees.
Medium-Sized Healthcare Group
Identified and documented $400,000 in excessive PBM charges through our performance of multi-year audits of the group’s Pharmacy Benefit Manager (PBM). After the first annual audit, which documented improper pricing discounts that led to the overcharges, the PBM made ever fewer errors over the following three years. The PBM understood that their client now had vigilant experts…RAS…regularly reviewing its work and validating the accuracy of its charges, and the PBM was able to learn from and correct its operations by drawing on RAS’ findings. While a subsequent audit identified almost $100,000 in errors due to less-than-optimal utilization management (e.g., refilling prescriptions too early; step therapy, and prescription drug pricing), the most recent audit identified less than $20,000 in overcharges.
Health Insurance
Global Corporation
Saved $3 million (18%) in health insurance costs for a $3 billion industrial engineering and manufacturing firm. The savings in the employee and dependent benefit program were for theUSA-based employees and dependents in this company, which has more than 170 production and service sites around the world and 15,000-plus employees in over 40 countries.
Recovery Auditing
State Government
Recovered $767,000 by identifying, documenting, and recovering overpayments, outstanding credits, and unrealized rebates due from vendors.