PGV Advisors: The Proof is in the Pudding
PGV Advisors purpose is to help organization Grow Profitably. The company assists its clients by implementing strategies that improve the cost structure and working capital as well as allow for an organization to support profitable revenue growth. The process includes taking a comprehensive view of the organization from top to bottom in order to tailor the approach for each company. PGV Advisors offers their services to various organizations in any industry including non-profits, higher education, hospitality, and manufacturing – essentially any high growth institution that is spending money.
By looking at various categories of spend, PGV Advisors finds where there is opportunity to save. The team’s focus at PGV Advisors is to assist organizations in creating wealth and opportunity through potential savings. Approximately 70-75% of what PGV Advisors accomplish is assisting companies in improving their cost-structure including finding goods and services at better price points, enhancing vendor relationships, as well as having the tools and processes to make it sustainable.
One of the companies in which PGV Advisors offered services to included a $3B global Industrial Engineering and Manufacturing Firm. The company exists with over 170 production and service sites around the world. It has more than 15,000 employees in over 40 countries. Both cost savings and reduction were found in areas of Insurance, Real Estate, Mobile & Network, Networking & Telecom, Labor, Office Equipment, as well as Supply Chain Management pertaining to Logistics and Strategic Resource.
To achieve cost savings through insurance, PGV found that the Global Industrial Engineering and Manufacturing Firm had a high spend on health insurance globally. This was due to larger than average dependent to employee ratio and that the dependents claims cost outpace the employees. PGV negotiated and aided the company to sign a new broker agreement, which in turn helped the company to obtain 18% Total Savings. Additionally, with regards to Real Estate, the company maintains 360 locations worldwide. PGV was able to reduce over 8% in facility expenditures/leases in 2016 with expected savings of up to 12% by 2018.
Further cost savings was achieved through the negotiation of the company’s Mobile Network. The Global Industrial Engineering and Manufacturing Firm’s United States AT&T wireless mobile and data plans were to expire. PGV found that traditional division-specific plans, contracts, and prices had only limited leverage of regional spend volume. PGV helped the company to sign the new 2-year contract with AT&T and the company saved over 48%.
By the same token, PGV’s team aided the firm in obtaining cost reduction in Global network and Telecom by 22% per year in Asia-Pacific region by challenging and decommissioning existing MPLS lines, using existing Internet lines. Furthermore, they cut cost in Mexico landline by consolidating lines by 31% per year, saved application hosting service fees in U.S. by 16% per year, and reduced Vodafone Mobile & Land line in Germany by 23% per year.
With regards to cost savings and labor, the Global Industrial Engineering and Manufacturing Firm had been using over 65 vendors globally for temporary labor. PGV’s strategic goal was to achieve 10-20% savings on temporary labor globally, based on volume. The team utilized a centralized work order tool for data capture and workflow compliance leading to price consolidation through the negotiation of a lower mark-up rate, temp to perm hire rate structure, recruiting fee’s, service level agreements, and sign on bonuses. This resulted in yearly cost savings of 8%-22%.
In the area of office equipment, the firm has been using over 45 vendors for office equipment printers. The team at PGV designed Request for Proposal’s (RFP) that were sent to major vendors for the best price leaving the company with savings of approximately 32% per year in printing costs. Additionally, PGV aided in the area of Supply Chain Management for both Logistics and Strategic Resources. PGV selected and implemented global logistics tools and processes for freight verification, spot quoting, Requests for Quotes (RFX), and basic transportation management systems (TMS) capabilities which in turn, led to better control over compliance and standardization of processes. Through leveraged pricing with increased consolidation of lanes by provider there was a total Cost Savings of 18% per year.
Within the area of Strategic Resource of Supply Chain Management, PGV helped cost reduction, net cash flow, and streamlining cross-enterprise and suppliers’ processes. This was done through a Chief Procurement Officer (CPO) letter sent to over 300 suppliers for price negotiations. The Global Industrial Engineering and Manufacturing Firm saw price reduction after the closing of the asset deal, $500K potential savings as well as signed agreements with three global suppliers in maintenance, repair and operations (MRO) leading to $250K of savings. Within the North America Region, PGV sent RFQ’s to vendors for core items with top spend and chose the winners for best pricing which in turn led to savings of over 10% per year.
The Global Industrial Engineering and Manufacturing Firm is just one example of the many ways in which PGV Advisors can help a company within many areas. These benefits provide clients with the opportunity to access their current products and services at a lower total cost. The dependable and experienced team at PGV Advisors becomes an extension of an organization’s existing team to help that company maintain control of their processes. When PGV completes work for a client, they are finally able to obtain visibility into their operations and assurance that those savings are sustainable. This allows for the PGV Advisors to develop practical solutions that drive a lower total cost model for organizations.
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Categorized in: Work
This post was written by Elevate, Inc.
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