Insight 10: Examining the hidden costs associated with the US state renewals process
Every year, the arduous task of processing renewals to maintain product registrations and licenses in each state becomes a high priority for companies. At first glance, outsourcing this task to a third party may seem like a hefty expense. The reality, however, is quite the opposite.
The renewals process is both a time and money-intensive exercise. For many companies, managing resources during renewals season can be a detriment to the flow of business. For a single renewal to take place, regulatory, financial, managerial, and administrative staff must all play a part in the process. Multiply this by potentially hundreds if not thousands of renewals, and you have a years’ worth of work to complete in a quarter of the time. Added to this is the inevitable risk of staff turnover during key renewal months. In some instances, companies may need to staff up to make it through a renewal season, diverting talented employees from other high-priority business. The risks associated with missing a renewal deadline can be anything from late fees to registration cancellation or even possible enforcement actions.
It warrants considering whether outsourcing this essential, but burdensome work is worthwhile. Although there is still a cost whether you outsource or complete in-house, it’s important to acknowledge what may be lost when your employees are diverted from higher-value commercial activities to complete largely administrative work. Third parties like TSG Consulting have both the experience and the bandwidth to manage thousands of product renewals, freeing clients to focus on more important business.
TSG has invested resources to develop a proprietary database, helping streamline the renewals process and give greater visibility across client profiles. The system is cloud-based and effectively tracks, manages, and forecasts renewals for each individual client. The system has the capacity to adapt to future regulatory changes – if a company is attempting to handle this in-house, it could mean more time and money, making outsourcing much more cost-effective and appealing.
Mandi Daun, Regulatory Consultant in TSG’s state affairs office in Sacramento, has firsthand experience with the renewal process. She and her colleagues process thousands of renewals every year. She shared with us a bit about the value of utilizing a database to manage renewals. “Given the challenges that come from unique requirements in each state, having a tool that manages the renewal cycle allows us to forecast deadlines and predict budgets based upon upcoming registration fees, enabling our clients to maintain compliance.”
Kelly Rahn, Vice President, State Affairs & Head of TSG California adds: “Outsourcing may appear to be an expensive option, but when you factor in the often-overlooked costs such as overhead and employee benefits into the total compensation of the relevant regulatory, finance, administrative and management staff, TSG provides a cost-effective solution. Clients also benefit from TSG’s expertise and efficiency that comes with processing tens of thousands of state renewals each year.”
If you haven’t considered outsourcing your renewals work and would like to know more, do get in touch at email@example.com. Our state affairs team would be happy to discuss the process, and how TSG can support your business.