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Opportunity cost doesn't show up on a financial statement, but it is very real and can be the difference between exceeding or missing the street's expectations. We all know that "time is money". In the supply side of your business, opportunity costs can be found in the time it takes to negotiate and procure lower cost services. The opportunity cost of a lengthy procurement process is simply the difference between what you could be paying vs. what you are currently paying multiplied by time it takes to complete the process. The process for identifying needs, developing, managing, analyzing and negotiating contracts can be a 4-8 month or longer, labor intensive process. For each month it takes to reduce your costs, the opportunity is lost and can never be recovered.
By utilizing Optelcon's proven Rapid RFPtm process and systems, your company can start saving money 4-6 months sooner.
Utilizing Optelcon's Rapid RFPtm process and systems, the entire cycle of needs identification, inventory creation, through to contract signature are achieved an average of 45 days. Not only can Optelcon significantly shorten the "Needs to Savings" cycle, but we can also assure that your company gets the best terms and pricing available in the market. In addition, Optelcon works with your procurement team to create the best negotiating strategy to quickly apply these savings to your bottom line. Since Optelcon's seasoned negotiators and legal representatives have negotiated over a billion dollars in contracts for hundreds of clients, Optelcon can zero in on best practices and key terms and conditions, which can save your company time and legal expense. Part of the Rapid RFPtm process enables Optelcon to compare your pricing or current best bid information against the rest of the market. Depending on the vendors account teams, quotas, specials, competitive pressures and other factors, pricing from one deal to another can vary significantly. Due to competitive pressures, Individual Base Case "ICB" pricing is typically used to win large contracts. These "special ICB deals" are not typically shared with everyone. In fact, most vendor account teams do not even have any visibility into deals that were cut with other account teams.
Using the data collected by our negotiations, RFP reviews, market research and other sources, we can quickly find the best pricing structures. Optelcon's negotiators use this data and other tactics to get your company the best price. Due to our extensive industry connections, Optelcon also performs targeted mini-RFP's with very specific and relevant product data to spot check if the market has shifted further in your favor. In addition, Optelcon's negotiators are constantly improving our clients pricing and terms. Even if you are in an existing contract, Optelcon can help. Over 75% of the contracts Optelcon successfully re-negotiates, for a cost reduction, have over 1 year left in the commitment. Although Optelcon performs the vast majority of the work, you are in complete control of the process. Optelcon works with your procurement and executive teams to formulate the best overall bid and negotiating strategy. Optelcon does not receive revenues from suppliers so you be assured, our advise is objective. We also understand the importance of a strong vendor/client relationship and work diligently to foster this relationship. Our negotiating strategies always stress a non-confrontational approach, which actually strengthens your vendor relationship in the process. Optelcon will get a consensus on the game plan and then run the plays, saving you time and energy. Contact Optelcon today and start improving your bottom line tomorrow. Rapid RFPtm Road map.
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