We designed three simple ways in which we develop client partnerships:
Traditional outsourcing
NewLogic provides access to
its business techniques,
resources, and processes
located at its operational sites
in
South Tyneside
and Milton
Keynes.
Typical commercials work
on a cost plus model with
planned savings. |
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Project Management
NewLogic assist with the performance or management of internal customer communications.
This can result in implants on customer sites or outsourcing of resources under TUPE regulations to NewLogic. |
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Risk and Reward
NewLogic share in the cost
and liability and have a vested
interest in the commercial
performance of the
partnership. |
|
Most common in the marketplace is that of a traditional outsourcing relationship where a particular project can be specified and benchmarked and we will work to set Service Level Agreement and pricing matrix. We were the first outsourced supplier in the market to adopt a "gain share" model where our remuneration is directly aligned with that of our clients. There are several ways in which we can deploy a gain-share model depending upon the application.
Listed below are some examples of gain share engagements we currently have under contract:
Fixed price contract terms (FP) We are working to an agreed annual fixed price to support a major outsourcing contract. Based on an extensive audit of the previous operation we demonstrated we could introduce cost efficiencies to the process. Risk & Reward (RR) We are being retained to generate additional revenue in several B2C markets. In some instances this is introducing a new product then, latterly, cross selling added value products and services. Following extensive data analysis and testing we have developed a "payment by results" model where we have deployed significant infrastructure and resources and are remunerated purely on the value we create. Profit share (PS)
We have provided an entire back office function to a major e-commerce enterprise (including inventory management, warehousing, pick & pack, and distribution) at no fixed cost. All account management, direct and in-direct costs are part of a percentage of profit share.
Audit share (AS)
We are often remunerated on the savings introduced to a traditional marketing function. Print procurement and postage are examples of where, following extensive research and negotiation, significant budget savings have been made. Or remuneration has been pre-agreed based on the amount saved. |