Partnership
We believe that true success is built on strong Partnerships. Our approach is centered on collaboration, trust, and shared goals — working closely with clients, suppliers, and stakeholders to create lasting value.
At Spend Tactics, our shared savings partnership model is a performance-based commercial arrangement designed to align our success with yours. Under this model, our fees are directly tied to the financial value we help you achieve—whether through cost reductions, improved supplier terms, or operational efficiencies. Simply put, we only earn a portion of the actual, verified savings or value we deliver.
No Upfront Cost or Reduced Risk
- Benefit: Clients avoid large upfront fees or retainers.
- Why it matters: Budget-constrained organizations or those hesitant to invest in unproven initiatives can proceed without financial exposure.
- Example: If savings aren’t realized, the client pays little or nothing—aligning payment strictly with results.
Aligned Incentives for Performance
- Benefit: The provider is motivated to find, implement, and sustain real savings.
- Why it matters: Both sides have “skin in the game”—the more savings realized, the more both benefit.
- Outcome: You avoid scenarios where the provider gets paid regardless of impact (like flat-fee consultants).
Access to Expertise & Technology
- Benefit: Clients tap into advanced capabilities (e.g., procurement specialists, analytics tools, automation) without paying full-market cost upfront.
- Why it matters: Enables access to innovation and capability without hiring FTEs or investing in systems.
- Strategic impact: Accelerates transformation or cost takeout programs that might otherwise be delayed.
Fast ROI and Margin Expansion
- Benefit: Savings often start within the first quarter or two, with real impact on P&L.
- Why it matters: Immediate contribution to EBITDA or operating margin—especially valuable in margin-constrained industries.
- Example: 5% reduction on $50M spend = $2.5M saved, with a portion reinvested or captured as pure profit.
Flexibility and Scalability
- Benefit: Programs can be scoped narrowly (e.g., MRO, tail spend) or expanded to enterprise-wide sourcing initiatives.
- Why it matters: Clients retain control over pace and scope of engagement, scaling based on outcomes and organizational capacity.
Governance and Transparency
- Benefit: Providers typically operate with detailed tracking, reporting, and validation processes.
- Why it matters: Clients maintain full visibility and approval over initiatives—no surprises.
- Bonus: Builds internal confidence among finance and operations leaders.
Strategic Focus for Internal Teams
- Benefit: Internal procurement or operations staff can stay focused on core or strategic priorities.
- Why it matters: Offloads tactical or time-consuming initiatives (e.g., renegotiations, data cleansing) while still delivering results.
Why It Works for Clients
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Client Objective
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Shared Savings Model Response
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