Prime advantage cost benchmarking Services
Prime Advantage, in partnership with Strategic Resource Management (SRM), delivers Cost Benchmarking to our Membership for purchasing categories not covered within our buying group through our Endorsed Suppliers.
Our Cost Benchmarking Service is a method used to compare total cost of a product, or manufactured good against costs incurred by other businesses, in similar and different industries, who consume that same product to produce a good. It's an extremely efficient way to compare your current pricing structure against a cross industry sample, to add validity to current contracts, as well as identify areas for improvement.
Benefits of Cost Benchmarking
- Our Members' investment of time and effort is generally small
- Our Members pay no upfront fees
- Our contingency approach minimizes risk
- Validation of best in class pricing
- Identify categories of interest — Members, in conjunction our Regional Account Managers, identify categories of interest, currently not being provided by our Endorsed Suppliers under our buying group model.
- Two-phase benchmarking approach includes comparing pricing against benchmarks currently in our database which are refreshed monthly. We then identify the very best in any industry to use for our Cost Benchmarking comparison. Our exploratory process includes in-depth cross-industry market research, quantitative research, and survey questionnaires.
- Member Savings Plan — Our results are then compiled and presented to the Member for evaluation. This plan encompasses several options for consideration.
- Implementation and monitoring — Once the Member identify the Savings Plan they'd like to implement, commitments are solidified with the vendor or vendors, and monthly monitoring and savings reports are generated and delivered to the Member to ensure compliance.
Our Cost Benchmarking Service serves as an excellent complement to our negotiated programs with our Endorsed Suppliers in the buying group, providing two approaches for procurement organizations to manage and drive down costs within their supply chain.