Lowering Costs is Our Passion.

But for those who are just hearing about us, let us shed light on the most common questions we receive regarding the cost reduction business. Better yet, feel free to contact us, and we will be happy to answer your questions personally.

What does Alliance Cost Containment do?

Alliance Cost Containment, or ACC, is a leading provider of cost reduction services. We help clients raise their bottom line by leveraging unmatched market knowledge, national purchasing agreements and unique subject matter experts. Our clients realize impressive, sustainable savings, often reducing costs by 10–40% in 35 common expense categories. We then track client spending and audit results to ensure that promised savings are achieved. A partnership with ACC not only means lower costs, it also represents quality, service, value and honesty.

What types of companies can utilize cost reduction services?

Every type of organization can benefit from utilizing cost reduction services, lowering their costs, and raising their profits. Our clients have a minimum of $1 million in general and administrative expenses and $15 million or more in annual revenue.

How do you determine cost savings for your clients?

We determine savings for our clients through a refined process of finding and realizing meaningful savings. The first major step is to complete a Preliminary Savings Analysis at no charge to the client. This report shows which suppliers would be targeted for negotiations and the overall savings range we estimate for the project. Next, we negotiate with the vendors, refer to our Subject Matter Experts and implement the savings on the client’s Finally, we audit those savings to ensure that the client continues to receive the agreed upon pricing.

What if there are suppliers that the client does not want you to engage?

If there are suppliers that the client does not want us to engage with, simply let us know which suppliers to eliminate from the project, and we will leave them alone.

How much internal staff time is required to engage in cost reduction services?

ACC engagements require a minimal amount of time from your staff, typically focused on initial approval of suppliers to engage and on the location of client contracts that might apply to the project. ACC gathers the data, takes care of supplier bidding, as well as the great majority of the project implementation.

Shouldn’t my internal purchasing people already be doing cost containment?

Most companies are looking at cost containment, but in virtually all organizations the task is too large for internal staff to handle along with their other purchasing duties. As a result, it is pursued on a sporadic basis when a problem arises, rather than as a conscious effort. ACC can quickly address cost reduction across a variety of categories, bringing in national purchasing agreements and specialized subject matter experts that deliver results well beyond what your staff may be able to accomplish on their own.

Are clients obligated to implement Alliance Cost Containment’s recommendations?

No, clients are absolutely not obligated to implement Alliance Cost Containment’s recommendations. We realize that there is more to supplier selection than price alone. If you do not accept a recommendation, that item will be removed from the project and will not be counted in the overall auditing of savings going forward.

How does ACC charge for its services?

ACC has a contingency-based model. We share the documented savings generated over the agreed upon period with our client. We take a deposit at the delivery and acceptance of the final report for each expense category and audit actual results every two months going forward; we bill for our share of the savings when we send you our audit reports.

Are there any charges after the initial engagement is over?

No, there are no charges after the initial engagement is over. After the engagement ends your organization keeps 100% of the savings. Many of our clients request that we continue to monitor expenses in selected areas because they value this additional oversight. This is typically done based on agreed-upon fee negotiated to reflect the work included.

What information does ACC need to create the free initial savings analysis?

To get started, we will need a copy of your supplier file. It should contain 12-month spending total organized by supplier. If available, it is also helpful (but not required) to have a file showing supplier addresses. Most organizations have one or both of these files available as a standard report within their A/P software.

How can my business become an ACC client?

Getting started is a snap! Contact us today and we will get you up and running in no time. We look forward to hearing from you.

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If there is something you would like to know, please send us a note and we will get right back to you. Chances are others have the same question, so we can add yours to this list and help others better understand cost reduction for businesses.

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