Reducing Fees Saves Customer $9M

National bank leased a 900,000 square feet of office space in Chicago, IL. CMG's Group Member reviewed the lease and analyzed all available charges since lease commencement in 2003.

At the time the lease was negotiated, all parties understood that the building would be managed by its owner and not by a third party management company. As a result, the lease called for the Company to pay for the cost to manage the building as a part of operating expenses. CMG's Group Member discovered that the landlord had been billing the Company for all costs to manage the building plus a management fee.

CMG's Group Member negotiated a settlement whereby the Company agreed to pay the landlord the market rate for a third party management company, thus reducing the Company’s originally liability by more than 50%. This resulted in savings of $9 million from the date of settlement through the end of the lease term.

Client saved over $3M in First Year

A mid-sized Health System (17 facilities) enlisted the help of CMG’s Group Member in an effort to contain healthcare spend. The decision to conduct a dependent eligibility review was based on the client’s interest to reduce healthcare costs with no erosion to employee benefits.

The dependent eligibility review is a comprehensive audit that effectively and efficiently identifies ineligible dependents on healthcare plans.

CMG’s Group Member worked closely with the Client to develop project communications, fulfill mailings, extend call center support, process responses and provide project reporting. Throughout the review, employees maintained access to an employee status website and the client maintained access to a live, reporting dashboard, providing up to the minute reports on all aspects of the project.

CMG’s Group Member projected a first year savings of $3,248,600 for the
Client. Nearly 9% of dependents reviewed were identified as ineligible.

Customer Saved 21% in just 90 days

A global provider of aviation services and pilot training, recently experienced a sharp increase in shipping costs. The company also had concerns they weren’t receiving competitive discounts on their shipping volumes. Furthermore, while corporate headquarters used one primary transportation carrier, satellite offices and training centers used a mix of different carriers, making it difficult to manage spending and discounting.

The Group Member analyzed spending with each carrier and confirmed that the client was not receiving competitive discounts. CMG’s Group Member worked with the client to create a new contract with their primary transportation carrier.

The new contract drastically reduced the minimum shipment fee for internationalshipments by 30 percent, doubled the discount rate for all air shipments andprovided for a 25 percent discount for all ground shipments. Additionally, work wascompleted with more than half of the company’s satellite offices to create similarcontracts with the same primary carrier. In just 90 days, CMG’s Group Membersaved the client more than 21 percent of their total transportation spend.