The Process
No savings. No fee. Simple as that.
TC Sourcing operates on a pure gain-share model. We audit your current spend, execute a sourcing strategy, and split the savings — 70% to you, 30% to us. If we don't save you money, you owe us nothing.
Baseline Audit
We start with your numbers.
Before we touch a single supplier, we do a thorough audit of your current spend. Pricing, suppliers, contract terms, quality history, lead times — everything. That audit produces a verified baseline: the number every future result is measured against. No guesswork, no inflated benchmarks.
Typical audit takes 1–2 weeks depending on your data availability.
Sourcing Strategy
We go to market on your behalf.
With the baseline locked, we build and execute a sourcing strategy tailored to your shop's needs. That means competitive bids, supplier negotiations, contract terms, quality requirements, and delivery commitments — all handled by us. You stay focused on running your operation.
Strategy execution typically runs 4–8 weeks for the first engagement.
Savings Delivery
You keep 70% of every dollar saved.
Once new supplier agreements are in place, we measure actual savings against the baseline. You keep 70%. We take 30%. That's it — no retainer, no hourly billing, no surprise invoices. Our fee is a direct function of the value we deliver to your bottom line.
Savings are calculated on a rolling basis and reconciled monthly.
The Gain-Share Model
Aligned incentives. Every time.
Traditional consultants charge by the hour whether or not they deliver results. We don't. Our gain-share model means our interests are perfectly aligned with yours — we only get paid when you save money. That changes how we work, what we prioritize, and how hard we push.
Common Questions
Straight answers.
How is the baseline set?
We work with your team to pull actual invoices and purchase orders from the prior 12 months. We normalize for volume, grade, and market conditions to produce a fair, defensible baseline that both parties agree to before any work begins.
What if steel prices go up during the engagement?
The baseline is adjusted for market movements. We use published index pricing (e.g. CRU, Platts) to separate market-driven changes from sourcing-driven savings. You only pay us for savings we actually created.
Do we have to switch suppliers?
Not necessarily. Sometimes the best outcome is renegotiating better terms with your existing suppliers. We go wherever the savings are — new suppliers, existing suppliers, or a mix of both.
How long does the first engagement take?
From kickoff to first savings delivery is typically 8–12 weeks. The audit and strategy phases run 6–8 weeks, followed by supplier transitions and a 30-day measurement period.
What size shop is a good fit?
We work best with shops spending $500K or more annually. Below that threshold, the absolute savings potential may not justify the engagement for either party.
Let's look at your numbers.
The audit is free. The conversation costs nothing. If there's savings potential in your steel spend, we'll find it.