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FAQsOn this page you will find answers to all of the more common questions we get asked.
We’ve got good supply arrangements in place. How do we know that ERA won’t jeopardise our arrangements?
ERA does not enter your organisation with the philosophy of changing suppliers to those with the best rates. ERA consultants review the existing supplier’s service and rates, your needs, your current situation and future requirements before preparing a brief. ERA then takes this brief to market where a selection of suppliers including your incumbent/s present and you can identify who is the right fit for you. From experience, we have found that when suppliers are faced with a competitive tender they often reduce their prices either to keep their existing business or to gain more business as your needs are better understood. ERA always negotiates firmly but courteously with your suppliers. It is our experience that good suppliers understand the need for competitive reviews and are not offended by them. In fact, good suppliers see considerable potential for extra business. How does ERA handle the implementation process?
ERA monitors the implementation phase closely and where possible tries to achieve a smooth transition into the new contract arrangement, but in reality issues may arise. And if so, ERA handles the problems and keeps in touch with the key people in order to rectify the situation. How does ERA understand our business and listen to our detailed concerns and requirements?
At the start of the process ERA only has a superficial understanding of your business. So in order to do a professional job we have to understand your business and your supply arrangements. The initial discovery process we go through, with your help, is critical to the success of the project. During this phase, ERA conducts interviews with the key people affected by our activities and facilitates group meetings to gain a better understanding of your current suppliers, their strengths and weaknesses and, of course, your ideal supply situation. All of this information is then built into the situation and options reports, which are critical to ensuring that we provide the ideal outcome for your organisation. How does ERA implement the new supply arrangements successfully?
ERA is very focussed on generating a profitable outcome for you. In order to ensure that this happens we drive the implementation phase of the project so that all changes are put in place quickly, efficiently and sustainably. How do I know that the chosen supplier is complying with the agreed terms of the tender?
ERA monitors all supplier invoices for the agreed period after implementation and this is usually 24 months. Any pricing variations are taken up with the supplier. The comparison between the benchmark price (the price that prevailed before ERA’s involvement) and the lower negotiated price forms the basis for ERA’s remuneration - after all we have a vested interest in seeing that the agreed terms are complied with. In addition, ERA ensures that the supplier is delivering service in line with your requirements and again any issues are discussed and fixed. What happens if ERA does the work and can’t find any savings?
If this happens, the ERA consultant gives you a brief report, but no invoice. No savings, no fee. That’s our guarantee! Tell me more about your range of services
The ERA process covers two separate services. Cost Reduction Management We look at your usage and pricing on a wide range of general overhead costs or categories such as couriers, freight, document storage, office products, reprographics, telecommunications, merchant card fees, travel, accommodation, energy, office cleaning etc. We carry out a detailed analysis of your usage profile and provide options for more cost effective solutions. We then implement the selected option/s and monitor supplier service performance and pricing for an agreed period, usually 24 months. Overall, our objective is to generate extra profit for you quickly and sustainably. And best of all we do all the work. Accounts Payable Recovery Audit This is a service we offer larger organisations turning over more than US$100million per annum. We work backwards through about three years of historical transactions. We recover overpayments from your suppliers and are only paid when the funds are received. If we don't recover anything, you don't pay us. We look at duplicates, wrong payments, GST input credit errors, errors in contract pricing, rebate errors, and settlement discount errors. We also tidy up your supplier list and give your accounts payable systems a "health check". We give you regular reports on our progress and practical suggestions on how errors can be minimised in the future. All we need from you is an electronic download of historical accounts payable transactions and we do the rest. How do you collect information about our category usage?
We collect this information in two ways: Firstly, we analyse the suppliers' invoices for the past 12 months. The objective is to gain detailed information on pricing, volume usage, business value, specifications and usage profile. Secondly, we conduct interviews with key people who are involved in the use of the category to gain an understanding on service requirements, strengths and weaknesses of suppliers. As well to compile a "wish list" for the ideal solution. This part of the process is critical in that it enables us to understand your detailed requirements and ensures that we recommend a workable solution. |
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