Page 7 - Getting a Handle on Unmanaged Spend - SIB Whitepaper

Ideal solutions for the
COst-control Issue
The solutions for every company wishing to reduce its recurring cost burden are relatively simple in theory, but can take a lot of e ort to achieve.
In the case of contract consolidation, it is much more effective to renegotiate with current vendors based on the best market rates. This
saves you the time of waiting for contracts to expire, as well as the added expense of early termination fees. It also prevents pushback from local managers who may not be pleased with changing vendors. Collecting these contracts can cost accounting teams enormous amounts of time, but it is well worth the effort.
Audits and reviews need to nd duplicate charges and overcharges rather than just duplicate payments and overpayments. This approach focuses on vendor error rather than payer error. Additionally, these reviews need to be leveraged to optimize service levels, renegotiate rates, and achieve ongoing future savings rather than just cleaning up past mistakes.
Negotiations are the most effective route to direct savings, but you must rst collect enough benchmark data to know the best rates vendors are charging for similar services in your area.
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