Plano, TX December 16, 2002 A.T. Kearney today announced the launch of a new "Accelerate Your Savings" (AYS) service offering from A.T. Kearney Procurement Solutions. The company said the program allows customers to fund e-sourcing services through a portion of negotiated procurement savings, thereby reducing up-front risks and cost.
The AYS program offers access to contracts for commonly purchased goods and services through its purchasing consortium, Leveraged Sourcing Networks (LSN). In addition, the strategic sourcing process is accelerated in high priority categories the program.
The program is implemented in a three-phased approach, with each phase rolled out based on a predefined set of activities and commitment terms.
Phase I is a free assessment period that uses pre-negotiated frame agreements in a growing range of indirect expenditure categories. Results can be seen in as little as 10 days, according to the provider.
Phase II applies e-sourcing tools and technologies such as online auctions and RFXs, category templates and other eSourcing services.
Finally, the rigorous process applied in phase III results in a critical review of complex categories, an aggressive supplier relationship restructuring, improved demand management and an overall procurement organization assessment.
A.T. Kearney said the AYS program also guarantees a return on investment (ROI) of 300 percent to those approved participants with no financial risk.
"The Accelerate Your Savings program is a very attractive vehicle for our customers, especially in the mid-tier markets, that wish to engage in strategic sourcing but need to establish agreed-upon savings before dedicating financial resources," said Michael Sorensen, A.T. Kearney procurement solutions vice president of global sales and marketing. "The service has been very popular to date, as it allows a strategic assessment of sourcing and cost savings opportunities within a framework that is suited for today's tight economic climate."