TEM Procurement clients
can reduce or eliminate purchasing staff costs,
thereby achieving direct savings from employee
salaries and the elimination of overhead burden
from employee benefits (retirement funds, health
insurance, 401K plans, etc.). Today, the direct
cost for benefits, other than salary, is estimated
at 35-plus percent of a full-time employee's total
compensation package. And these costs continue
to rise dramatically as health care and other
"people" benefits outpace inflation.
It's estimated that procurement professionals
earning a salary of $4,000 a month, actually cost
their companies more than $7,000 after the value
of benefits is added.But there are also additional
hidden costs that prudent managers today must
factor into the equation before adding new staff.
Things like the proportionate share of supervision;
office space and equipment; computers and information
technology equipment; training; and other office
expenses all drag down the bottom lime. And these
expenses are ongoing regardless of the level of
activity.
TEM clients will only be billed and charged for
the actual time required to perform a contracted
task. This translates to higher levels of
service with fewer people, and less down-time.
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