How We Work
We’re proud of our process, and want you to be completely comfortable
with how we work. Please click the appropriate question for additional information.
How does the process work?Answer
Before taking an engagement, we perform a free diagnostic that enables us to identify the key opportunities, the potential savings and a projected timeline.
Once the engagement begins, we work with you to analyze your current purchases, your requirements and develop the expense baseline against which savings will be measured. The result is a Target Requirements Report (“TRR”) for each category of expense that details your needs and our marching orders — i.e., the exact goods and/or services, specifications and pricing to be targeted.
Armed with the TRR, we undertake exhaustive market research, qualify vendors, prepare and conduct RFPs, analyze responses, and sharpen the pricing and vendor terms. This is all presented in the Savings Opportunities Report, which lays out in detail the various savings options and our recommendations.
The client’s approval of the savings recommendation is followed by final vendor negotiations and actual implementation of the savings. (For a flowchart showing an overview of the process, please see the “Engagement Overview” tab.)
We don’t leave you with a workplan and a promise — we conduct the research and the negotiations, and we actually put the savings into place.
Will we be required to change the goods and/or services we buy?Answer
Your specifications are sacrosanct. For each of the targeted goods and/or services, we will present you with savings for both: (i) the identical product or service; as well as (ii) a range of options that will provide enhanced savings.
For example, for shopping bags, the savings opportunities would include both the identical bag, as well as options for changing thickness, composition, printing, handle fabrication, ordering, etc.
Accordingly, you control whether there is any change in what you buy — and, if so, the amount of change. The choice is always yours.
Will we be required to change vendors?Answer
We believe that our clients understand their business. We also understand the value of vendor relationships. Accordingly, we follow an incumbent vendor strategy.
This means that following our analytics and market research to determine the best available pricing, we always (unless you instruct otherwise) work with your incumbent vendors to allow them to meet (or beat) that best pricing.
Through this process, in more than 60% of the cases, we're able to help our clients capture that best pricing without even changing vendors.
How much time will be required of our executives and staff?Answer
Our goal is to be “plug and play” — that is, to reduce expense while minimizing the demands on your executives and staff.
Our engagements begin with a group “Kick Off Meeting” to introduce your executives to the process, gain their input and begin gathering data. Thereafter, we work primarily with frontline staff to ensure the accuracy of the data, understand your processes and refine the opportunities.
As the engagement progresses, we produce Status Reports for the senior executive liaisons (e.g., the COO, CAO or CFO), for weekly or bi-weekly updates — depending on their preference. We take responsibility for keeping all other relevant executives fully aware of our direction — and, most importantly, ensuring their understanding and partnership in our recommendations.
One client undertook an analysis of its return on the executive and staff time spent on our engagement. The result was $7,948 in savings for each hour spent. That’s certainly a worthwhile ROI.
What expense categories does Callydus address?Answer
Callydus covers virtually every area of non-salary expense, from Telecom, Freight and
E-commerce Logistics, to Medical Insurance and Television Advertising. (Please see the “Targeted Expense Categories” tab.)
We’ve already addressed expenses. What can Callydus do for us?Answer
All of our clients have been cost-conscious, and had previously addressed expenses. We get to the more difficult, intractable areas of non-salary expense that organizations simply don’t have the time, resources, or specific category expertise to achieve on their own.
Simply put, this is all we do — and we do it full time. Your people actually have businesses to run. They can’t devote the level of time and intensity to the analytics and market research that underlie our results. Further, they simply can’t follow the markets for relevant goods and services the way we do — or maintain the data bases that we’ve amassed over innumerable engagements.
How does Callydus get paid?Answer
Our fee arrangements are exceedingly flexible and our experience and efficiency enable us to charge significantly less than other firms.
We offer a wide range of alternatives — all based on our ability to produce savings. In many cases, we can work on a fully contingent basis.
What information is required for a Free Diagnostic?Answer
The free, no obligation diagnostic requires only a simple download of pertinent A/P data, in whatever form you maintain it. (We're happy to provide a Confidentiality Agreement to protect your information.)
Our review of the download includes a discussion with senior management to ensure that we've correctly interpreted the data. It also enables us to factor into our analyses your current priorities and any anticipated changes in your operations and/or strategies.
Depending on the scope and the quality of data received, the diagnostic can take as little as two weeks and provides you with valuable insights into your expense structure.