Learn more about our engagement methodology by selecting a stage on Newton's Cradle. To learn more about how we align activities, savings, and fees, see Our Guarantee.
Third Law Sourcing doesn’t just identify and implement savings, we work with clients to ensure that hard dollar savings are realized – or we don’t get paid. We validate adherence to pricing reductions and calculate savings based on new prices and go-forward volumes.
The client has sole authority to approve or refine the savings calculation, which includes:
After a deal has been reached between our clients and the vendor, we translate that enthusiasm into an agreement in principle that incorporates the key non-pricing terms. Often, you will be able to begin realizing savings in parallel with the implementation of a formal legal agreement, once the "term sheet" is passed onto your legal team.
Adhering to the tenets of principled negotiations, we start with a full understanding of each vendor relationship. Our goal is not only to save money, but to ensure that your vendor relationships remain intact and productive. You – the client – decide the level of involvement you will have in the direct negotiation process.
After you have approved the target opportunities, we dig deeper to identify and define the specific savings. We apply our knowledge of vendor pricing practices and our category expertise against your spend profile, to identify specific actionable opportunities. We provide clients with an implementation plan that details the savings and defines the implementation methodology. You have sole discretion to accept or reject any discrete proposal, and, because we are paid only for incremental savings you approve, we are uniquely aligned to identify and implement hard-dollar, bottom line savings.
From Discovery to Realization, every step in our sourcing process is designed to ensure that clients realize the full value of our expertise. Defining scope is not about establishing contractual obligations; it’s about creating a strategic plan to maximize hard dollar savings. Step one in our Sourcing Process includes delivery of a target list of potential savings by category and vendor. We normalize the data from your various systems and perform analytics against our industry benchmarks and heuristics.
