Case Study - Educational Training Resources (ETR) Above the Standard Procurement Group, Inc., ATSPG Franchising, Inc. www.ATSPG.com

2www.ATSPG.com

Case Study - ETRSeptember 17, 2012

The CFO realized the need for cost savings, compliance, better financial and procurement practice, and did not want to downsize some of the staff. He decided to do research and from people he knew in upper management,

our name was provided.

We started out by having a few calls to assess their need by listening. We then provided them with an outline of what they stated their need was and some po-tential solutions to centralizing their procurement and the benefits of doing so. From there, we had one more conference call, and we met for a three hour meet-ing at their corporate office. We then provided a proposal, which included scope of work, terms, what they wanted to accomplish, and a solutions based outline of the steps we would take together.

The steps involved the following:

� Assess each locations financial, logistics / property, administration (manage-ment oversight), and procurement functions, processes, files, staff, interac-tions at each facility, requisition through purchase order / award cycles, contracts, subcontracts, vendors, evaluation systems, vendor management, organizational structure, and much more;

� A report was created of the assessment, strengths, weaknesses, and areas that should be addressed to centralize their procurement;

� We conducted this process at several locations in the U.S.; � The next step was to source a Procurement Director

o We helped the company find a top performer that fit the culture of the organization within 6 weeks of starting this project;

� At the same time we provided a very detailed training to finance, administra-tion, and procurement people from their locations and the corporate office. Some of the topic areas we covered were:

o Compliance and regulation;o Standard Operating Procedure (SOP) understanding and application

within their organization;o Request for Proposal, cost reduction, and centralize purchasing of

goods and services;o Vendor sourcing – how to centralize all of their vendors for the benefit

of all locations;o Automating their Purchase Requisition and Purchase Order / Award

process through the basics and utilizing future software;o How to self-assess procurement best practice, files, vendors,

contracts, close out, and much more for each location;

Company Name

ETR

Industry

Educational Services, Facil-ity Management and Opera-tion, Workforce Investment Boards, Federal Contractor

Initial Need(s)/Project(s)

Centralize Pro-curement

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Case Study - ETRSeptember 17, 2012

o Contract creation, evaluation, and performance;o Vendor performance and evaluation; ando Much more.

� After all feedback, assessments, and training, we then helped formulate the centralized procurement with corporates finance, property / logistics, IT, and the procurement department. We did this in several ways:

o Meetings to understand each department, their effect, responsibilities, and impact of the changes;

o Creation of Standard Operating Procedures (SOP’s) and processes for the new procurement department;

o Outlined and presented the expectations from the group for final approval and implementation; and

o The procurement department started. � We helped created new Technical Guides for each department, as well as re-

vise the current SOPs in finance, property, logistics, procurement, and others; and

� We supported each action with follow-up to ensure the procurement depart-ment was self-sustaining.

Additional Project(s) ConductedFrom the initial project conducted, Above the Standard Procurement Group® (ATS) went onto conduct many other projects, such as:

� Procurement cost reduction for many areas, such as:o Office Supplies, Paper, Toner – Reduced by 47% or more than $250Ko Copiers – Realized $70K or 17% in Cost Savingso Maintenance, Construction, and Subcontract Agreements were

standardized reducing risk and liabilityo Janitorial, Cleaning & Green Supplies – Realized Cost Savings of more

than $120K or 25%o Food and Supplies – Improved bottom line by almost 10% through new

food commodity bidding techniques quarterlyo Other products and services;

� Government compliance work:o File evaluation;o Award selection;o Use of funds;o Management oversight of contract funds;o Small business utilization; ando Much more;

� Implemented Standard Operating Procedures for buyers and realized improve-ment in greater efficiencies;

We helped formulate

the centralized procurement with corporates finance, property / logistics, IT, and the procurement department!

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Case Study - ETRSeptember 17, 2012

� Technical Guide for product specific guidelines creation for 13 different areas; � Compiled Statements of Work for Federal Government Proposal Develop-

ment/Request for Proposal to the U.S. Department of Labor National Office of Job Corps;

� Mapped out procurement methodologies to gain efficiencies; � Analyzed and performed procurement audits and assessments to determine

deficiencies and room for improvements at all locations; � ATS delivered procurement outsourcing services by providing procurement

staffing professionals to support procurement functions; Created strategic and tactical plans to establish a centralized purchasing department;

� ATS supplied procurement management solutions by filling a job requisite the head of purchasing for their centralized purchasing department;

� Created subcontracts, contracts, and legal agreements for ETR’s use with ven-dors;

� Provide a platform for proper Vendor management and vendor relationship development; and

� Procurement training, financial training.

Outcome(s)The savings with ETR was more than $1 M annually. Our cost saving projects en-abled ETR to save staff jobs that were identified for a reduction in force or layoff! Having worked with ETR since 2008, we are excited about other projects that will help ETR in their cost reduction and growth. The overall cost reduction savings will be even more due to compliance, efficiencies, and a centralized procurement department instituted. We were able to increase effectiveness through improved communications, instituting best practices, and centralizing procurement. We provided a platform for proper vendor management and evaluation. ATS institut-ed many new techniques that impacted the resource allocations within the com-pany. We implemented green sustainability methods. We trained the staff, which empowered them to be more effective with results.

What does ETR have to say about us? “Above the Standard Procurement Group® (Above the Standard) came in and helped us to do the following:

� Created Technical Guides for thirteen different areas in our organization; � Centralized Standard Operating Procedures from each location to one stan-

dard for some areas (procurement, property, finance, and administration); � Reduced costs for office supplies by 47% (more than $250,000), janitorial,

cleaning and green supplies by 24% (more than $120,000), and copiers by 17% (more than $70,000);

� Assessed our procurement systems for compliance with procurement plans for improvement; and

We provided a platform

for proper vendor management and evaluation. ATS instituted many new techniques that impacted the resource allocations within the company. We implemented green sustainability methods. We trained the staff, which empowered them to be more effective with results.

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Case Study - ETRSeptember 17, 2012

� Provided procurement, green, assessment, and management training to our staff at each ETR location.

Above the Standard’s sense of professionalism and timeliness of our needs was almost as strong as his knowledge base on our business as a government contrac-tor. Above the Standard has become an excellent resource for ETR in the areas of procurement and technical training…. We are fortunate to have found them!!!”

CFO, ETR