SOW - Commodities, Waste & Utilities
Overview - Updated: October 29, 2013
Scope of Work Commodities, Waste & Utilities
Our standard scope of work is as follows:
1. Project Background and Description
NACC Group has over 25 years’ experience working with Fortune 500 companies to eliminate the risk of overpayment in various areas. With over 1,200 active Clients from every industry and sector, it is clear that Client’s appreciate having access to expert advice, strategies and support.
2. Project Scope
Together we will work with you to arrive at an acceptable arrangement; we offer shared savings, fixed fee and hybrid agreements to satisfy all new Clients corporate objectives.
Thereafter you can expect NACC Group to review each and every invoice copy, supplier agreement and price change notification you submit. While we would prefer to receive 3-12-months’ worth of invoice copies upfront, many companies choose to provide invoice copies on a monthly basis from the date our agreement is signed.
We are not here to replace or grade the current arrangements Clients have in place. We also do not try and beat your supplier’s margin down to a point where they can no longer service your account. We simply know what you should pay for each and every commodity and service you use. Some items we take into consideration prior to drafting our strategies are as follows: location, average delivery & container size, transportation costs, annual volumes, cost structures, market factors, import/export alternatives and the value of your portfolio with each Supplier.
Typically it take 4-6 weeks from our receipt of your information to complete the Initial Report. The Initial Report will include market information, comments, strategies, recommendations and draft letters. The draft letters are documents that you can easily transfer on to your letterhead and forward to your suppliers.
When your suppliers reply, which is typically via e-mail or letter, we will review the response and advise you accordingly.
This is in no way a painful process. The majority of the commodities we review are considered “unregulated”, therefore margins made of each customer can vary by more than 500% from Client to Client.
Your size and stature does not matter as we often find significant discrepancies between industries and sectors that use the same suppliers and commodities.
3. High-Level Requirements
To get started on a full review we require the following:
· A completed estimated annual expenditure document.
· Together we will arrive at an acceptable agreement.
· We will require invoice copies, agreements and price changes.
· Ongoing we require invoice copies, proposals & price changes.
4. Specific Exclusions from Scope
NACC Group will not work directly with your Suppliers as this often does not work. We will work in the back ground supplying accurate information, advice, strategies, recommendations and suggested letters. We have found that the source of the information is irrelevant when it is accurate and it is best that we work with your current team as they often have the relationship with the various suppliers.
5. High-Level Timeline/Schedule
The ideal timeline would be as follows:
· Day 1 - Return estimated annual expenditure document.
· Day 5 - Receive proposal from NACC Group.
· Day 12 - Supply comments to NACC Group and receive answers to any questions.
· Day 14 - NACC to make any revisions or satisfy and concerns.
· Day 20 - You sign proposal and we accept.
· Day 35 - We receive invoice copies, supply agreements and any other information.
· Day 45 - We will notify you of any questions.
· Day 63 - We present you with the Initial Report.
· Day 65 - You forward letters to suppliers.
· Day 75 - Savings should be implemented.
Note: This high-level timeline does not take into consideration any Utility Risk Management options or areas where we need to build a case over time, however it can be considered a general guideline.
Approval and Authority to Proceed
We approve the project as described above, and authorize the team to proceed.
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