Reduce Vendor Expense While Maintaining Service Levels
Reducing third-party expenses to current market pricing is an important component of any strategy for improving a financial institution's bottom-line performance. Unfortunately, most banks - even large institutions with extensive in-house expertise - often face challenges such as:
- Lack of complete, up-to-date comparative pricing information across the financial services industry
- Inability to compare pricing information in industries outside the financial sector
- Infrequent vendor contract negotiation, causing poor understanding of current market pricing
Comparing contract pricing to market benchmarks will identify opportunities that would otherwise be overlooked. The Crowe Horwath LLP procurement team has access to a broad range of information on market pricing benchmarks to help you identify opportunities for cost reduction. Team members also have extensive negotiation experience to help you achieve verified cost reductions without compromising vendor service levels or quality. In fact, in most instances, Crowe helps banks secure better pricing without changing vendors and often strengthens the overall relationship.
As a result, banks typically achieve average cost savings of 14 to 18 percent of targeted annual expenditures, while staying in control of the process used by Crowe to achieve the savings. What's more, Crowe employs a pay-for-performance model where fees and reimbursement are drawn only after actual cost savings have been achieved and documented.
Vendor expense benchmarking is part of a broad-based approach by Crowe to vendor selection and management, which helps you undertake a smarter cost rationalization effort - one that goes beyond the standard RFP and contract review processes, instead taking a more holistic view of spending.