FAQ

Some key clarifications to reinforce why choose us

Client: What are the objectives of the project?
Grou Consulting: The project has one single goal: generate saving in raw material cost. As much as possible and as fast as possible.
C: So you consider changing our products’ specifications to grab some opportunities in this area?

GC: No, this is not in the scope of the project. Our approach focuses on the renegotiation of raw material deals with suppliers and guarantees the integrity of your products. The implementation of the new negotiation model does not touch formulas and specifications, so your products will remain as they are today. By not interfering in customers’ experience, purchasing teams don’t need to negotiate internally with marketing or sales teammates.

C: Negotiating raw material prices is part of our day to day activities and we have already been putting pressure on suppliers on a regular basis… Is saving really guaranteed?
GC: Yes, saving is guaranteed. The difference is not what we will ask, but how we will ask.
C: How exactly was the negotiation model built and improved?
GC: Having been a supplier and participated in thousands of negotiations for more than 20 years was critical. Being on the other side of the table allowed us to clearly define the boundaries and the limits where suppliers are willing to go. Negotiating with local, regional and global companies, with different mindsets and strategies, contributed to experience different approaches and select the best from each of them to put together in the construction of our model.
C: Is it worth focusing in only one objective? There might be other opportunities to generate more savings, no?
GC: We will focus on where the biggest opportunity of saving is and where we together can capture it more easily. Focusing in one single goal will make the project more efficient and effective. And you don’t waste time in endless initiatives that not always deliver their goals at the end.
C: What exactly are the savings and the benefits you promise?
GC: Everything that we can capture from suppliers like price discounts, extension of payment terms, financial concessions and other benefits. Again, the differential is not what we will ask, but how we will ask. You will certainly see a strong positive impact in the cash inflow after changes are implemented.
C: You advertise that benefits are captured in 2 to 4 months. How can benefits be captured in such a short term?

GC: Because we know in advance pretty much all changes that will have to be implemented during the project. Throughout more than 20 years, we captured the best of different ideas, skills and approaches used in the field and consolidated in our negotiation model. This made possible to reduce the time spent in the investigation of opportunities and focus on how to maximize the benefits moving forward.

C: You also mentioned there are no anticipated payments… How is that possible?

GC: We trust on our model and on the savings we will provide. That enables us to set the aggressive approach of not charging anything in advance. There is no risk to you, only benefits! So why not to try…?

C: What are the phases of the project and their timings?

GC: In summary, the project is comprised of 3 phases: investigation of opportunities, definition of the targets and capture of the benefits.

1. Investigation of opportunities (3-6 weeks): In this phase we will work on your data to identify opportunities to implement our model and capture as much saving as possible. It is in this phase that we will select what categories of products will be part of the scope of the project;

2. Definition of targets (1-2 weeks): In this phase you will receive a detailed plan including recommendations of what to do, how to do and when to do in order to capture the benefits. We will fine tune the recommendations and then quickly approach suppliers;

3. Capture of the benefits (6-10 weeks): This is when the renegotiation of the deals happens. Our team will participate in the renegotiations together with you so that we can join forces to maximize the saving.

C: Additionally to the renegotiation of raw material deals, are there other learnings we can capture during the project?

GC: Yes. We will focus on delivering what you contracted: generate saving on raw material spend, as much as possible and as fast as possible. However, during the phases of the project, we will probably have the chance to address topics and possibly find opportunities for some additional improvements. We will be glad to help you in areas like Pricing, product formulation, budgeting strategies, raw material primary sourcing and costing etc. Ah, by the way, we will not charge you for these extras, even if you make money with our guidance.

C: Looks like magic… And we kind of don’t believe in magic…

GC: Well, after all hard work is done, it may look like magic now… But it cost a lot of transpiration, during more than 20 years in the field, to build and improve the approach. The model has been improved over time, that is why it is so efficient in generating savings. We know we run the risk of looking overconfident, and we pay careful attention to our materials and presentations in order to avoid misunderstandings. However, our highest commitment will always be to the truth. In all our communications, the truth will prevail. So, if the saving is guaranteed, we will make it 100% clear. Additionally, it is indispensable to stick to reality, especially when it comes to the ability to generate financial benefits, so that you can evaluate the project viability without any bias.

C: Ok, the proposal is strong… But we have other ongoing projects and don’t have much free time to implement your initiative right now… Can we talk again in the future?

GC: We regret to hear that, but yes… However, we need to clarify that our project needs just minor support from you. For instance, we don’t require any full-time resource from your teams, only a few people/meetings here and there to help us mapping the scene, especially in the investigation phase. With minimal planning, we guarantee you will capture the benefits without having to abandon other initiatives or your daily activities. This is a big differentiation of our proposal. If you have any doubt on that topic, please contact us and we will be glad to share our methodology with you.

C: We will sign a contract, right? What does the contract rule?

GC: Everything! From the basics like the object of the contract, responsibilities of the parties, phases of the project to more critical subjects like penalties, confidentiality and our remuneration. Clear rules are necessary to support every step of the project.

C: How can we schedule a meeting?

GC: You can email us at Contact@GrouConsulting.com or call us anytime on +55 11 94383-5678. We will be glad to present you our killing capabilities.