Manufacturers such as GE and Philips have done an outstanding job of demonstrating the energy savings in switching from a lower priced bulb/lamp to a higher priced one that cuts energy costs and lasts longer. But lighting is only one example. There are thousands of products that cost more from a pricing stand point, but deliver savings well beyond the additional price paid. And beyond products there are also hundreds of services that can reduce customer’s operating costs significantly…If you know how to purchase on a total cost basis and if you have suppliers who can prove the savings are real.
Walk through savings from lighting to see how Total Cost can be calculated.
"LewisGoetz has always worked hard to differentiate ourselves by documenting the value we bring to our customers. However, since implementing SalesStrat in 2007; that process has become much easier, quicker and better articulated to our customers. The SalesStrat system and specifically its management reporting process is user friendly, very powerful and since using it we’ve increased our annual documented cost savings by $15 million."
Corp. Manager Sales & Marketing
Lewis-Goetz and Company, Inc.
"ITC Transmission worked with Tim Underhill, president of Strategic Business Solutions, who helped develop a cost-management program for ITC Transmission and its supply chain. Through the program, purchasing and suppliers work together to impact the bottom line by reducing costs, increasing revenues, minimizing risk and improving performance. ITC Transmission tracks this impact through software developed by Strategic Business Solutions called SourcingStrat. The first year results: about $30 million in savings."
Steve Sczytko, Sourcing Manager