Going from Good to Outstanding
We very often think that companies already have a strong system of cost control and that there seems to be no room for further reductions. Most companies have indeed put a control system in place, usually based on the basis of comparisons made over the years or with other similar orders. The system also checks that invoices comply with the terms and conditions agreed upon, services provided and legal and corporate background. Of course. Most companies control their costs.
However, at Expense Reduction Analysts, we found that companies are paying 20% more than they should on overhead expenses. Our experience shows that we can definitely do better without altering the service quality or amending the current consumption. Where should we look? Not always in the same place, but dedicating resources, knowledge and time will improve any category.
An expert review of the product or service may detect that it does not really meet the needs or sometimes it is the lack of flexibility of the business itself that prevents its taking advantage of service opportunities.
There is always a higher step to reach. For instance, here are a few concrete measures available and easy to action that could benefit all companies and make them change from good to outstanding.
However, at Expense Reduction Analysts, we found that companies are paying 20% more than they should on overhead expenses. Our experience shows that we can definitely do better without altering the service quality or amending the current consumption. Where should we look? Not always in the same place, but dedicating resources, knowledge and time will improve any category.
An expert review of the product or service may detect that it does not really meet the needs or sometimes it is the lack of flexibility of the business itself that prevents its taking advantage of service opportunities.
There is always a higher step to reach. For instance, here are a few concrete measures available and easy to action that could benefit all companies and make them change from good to outstanding.
► Quality control: Some mistakes, creeping into the service and invoices during fulfilment, need to be detected and addressed and if necessary, rectified by the invoice department.
► Motivation: With careful preparation and acknowledgement, product or service users may be invited to suggest initiatives and forms of improvement; encouraging them to participate will bring new ideas in and spread a culture of consumption control.
► Technology: Avoid specifications that are unique to the product or service i.e. getting rid of rare or unusual requirements – not the newest nor the minority or the oldest are the cheapest. Buying or consuming in bulk is where you can achieve economies of scale.
► Feedback: the communication to the whole team of indexes and figures keeps everyone interested and encourage them to contribute to the common effort and improvement.
Analyst Summary
With more than 750 experts in more than 30 countries Expense Reduction Analysts is one of the world’s leading cost management consulting practice. We specialize in finding savings for organizations across the world through a proven cost management process. Since 1992, we have help thousands of organization improve their bottom line and free valuable budget to fund their development. Our clients include small and medium sized firms as well as not-for-profit and public sector organizations and global players.
