Clarion Call to Reduce Spending: Start with Cutting Procurement Costs

Nov. 4, 2010 - PRLog -- The electorate spoke loudly and clearly on November 2 when it voted to change the balance of power in Washington, DC, and in a number of state capitals nationwide.  The historic outcome signaled more than a preference for Republicans, Democrats or Independents.  It was a clarion call for reduced governmental spending.  The question now is: "How?"

"As a long-time campaign and political advisor, I know nothing moves easily or quickly through political channels," said William Gindlesperger, chief executive officer of e-LYNXX Corporation.  "I have never understood why the best ideas that benefit taxpayers/voters the most often take the longest."

However, Gindlesperger said the timing is right, now, for one such good idea -- an idea that when properly deployed can reduce by as much as half what organizations have traditionally paid for goods and services.  

"The fact is that those who embrace professional procurement have always worked hard at reducing costs, and, yet, up until now, an optimum procurement practice has remained elusive," he added.  "This idea has taken shape in the form of an elegant system, best practices and patented technology."

The system acts to streamline the workflow process by virtually eliminating e-mail in favor of automated portal to portal communication.  The system offers full transparency and reporting and an indelible trail that tracks all actions, communications and details of each project from concept through production to delivery and invoicing.  

Extraordinary cost savings occur because a competitive bidding environment is created in which vendors reduce their pricing to fill production gaps, Gindlesperger explained.  Because each job opportunity involves a new automated selection of prequalified vendors and a new round of bidding, the buyer and the vendors understand that the same vendor will not be bidding low on every job because low pricing is driven by each vendor's production needs.  This flexibility in pricing allows vendors to bid low when work is desperately needed and not so low when production needs are being met by other work.

"If federal, state, and local governments accepted this one good idea, and if these entities saved as little as 40% of their present costs, the resulting savings would be sufficient to make a difference on taxes," Gindlesperger said.  "Isn’t that what the election was about?"  

Sometimes old-school procurement professionals prefer relationship-driven procurement practices where there can be perks for the staff buyer who chooses one vendor over another - perks that may not help the organization reduce costs.  This new idea eliminates the subjectivity of a buyer choosing a vendor based on perks, because the computer is doing the automated selecting of which vendors will be invited to bid based on their objectively qualified capabilities.  

"Perk-driven decision making is exactly what governments need to eliminate in order to reduce costs and increase value purchasing on behalf of taxpayers. The time has come for governments to adopt cost-saving procurement technologies that reduce cost and cut spending.  If elected officials did not get that message on November 2, they were either not listening or asleep," Gindlesperger concluded.

About e-LYNXX Corporation
e-LYNXX Corporation developed the patented technology integral to e-commerce.  Endorsed by Educational & Institutional Cooperative Purchasing (E&I) and Printing Industries of America (PIA), e-LYNXX drives results through its three divisions.  ● Patented Procurement Method licenses the Automated Vendor Selection Technology (AVS TechnologyTM) used in e-commerce and procurement systems.  ● American Print Management provides systems, services and the patented AVS TechnologyTM to reduce substantially the procured costs of direct mail, marketing materials, labels, packaging and other procured print.  ● Government Print Management offers effective U.S. GPO bid services and strategies.  www.e-LYNXX.com – 888-876-5432