SOW - Fuels

Overview Updated: October 29, 2013

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 start with shared savings and limit our fees for all Transportation & Shipping Companies to $350 per month.  Fact is we will satisfy all new Clients corporate objectives and understand that everyone is very busy before we get started.

Thereafter you can expect NACC Group to review each and every invoice copy, price change, supplier proposal you submit.  While we would prefer to receive three months’ worth of invoice copies upfront to understand where you purchase most of your fuel, 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: average delivery & container size, locations & transportation costs, annual volumes, cost structures, market factors such as import/export alternatives and the value of your entire portfolio with each Supplier.

Typically it take 4-6 weeks from our receipt of your information to complete the Initial Report.  Sometimes with trucking Clients it may take longer as we review the details of each price change and will outline opportunities as they become available.

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”, including fuels, therefore margins made off each customer can vary by more than 100% from customer to customer. 

Your size and stature does not matter as we often find significant discrepancies between industries and sectors that use the same suppliers and commodities.  When we were involved in fuels in the past, the result eventually was a tiered price structure imposed by each supplier.  We are now back to ensure these structures are enforced and to eliminate overpayment.

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.
·    Thereafter we will require copies of invoices and price change notifications.
·    Ongoing price change notifications are required.

4.    Specific Exclusions from Scope

NACC Group will not work directly with your supplier 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 the proposal and we accept.
·    Day 35           - We receive invoice copies and recent price change notifications.
·    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.
·         This high-level timeline does not take into consideration any Utility risk management options, however it can be considered a general guideline. 

·         In addition this guideline assumes immediate cost savings.  Ongoing management is provided and typically NACC Group builds a case over time with Cardlock, Fleet Card and Bulk Fuels.

Approval and Authority to Proceed

We approve the project as described above, and authorize the team to proceed.
Name Title Date
Approved By     Date   Approved By     Date