Cost Savings Today - 3/2011
European Companies still rely on traditional methods for controlling overhead costs
Preliminary results of a European-wide survey on cost-saving programs in the field of overhead spending.
European companies control their costs and expenditures in clearly defined periods. This is the result of a study undertaken by EBS Business School in Germany and Expense Reduction Analysts. Based on the study 72% of the companies stated that they periodically control costs. 65% were of the opinion that they immediately react to a deterioration of their cost situation. Almost a third of the companies however prioritize an increase of their turnover over the reduction of costs. Furthermore, the survey shows that companies consider non-core spending an important area. 83% out of 301 companies that took part in the survey said that they had carried out a process in reducing their non-core spending within the past 3 years. One third of this companies used specialized consultancies in that process.
Based on the results of the survey, European companies perceive categories like Energy (43%), Marketing (28%), Logistics (27%) and Freight (25%) as the biggest cost drives and most important areas in the field of overhead spending. Three out of the top-4-categories are within energy-intensive sectors. Other important cost categories are Travel Management (20%), Facility Management (20%) and Telecommunication (19%).
Further content of this issue:
- Polish automotive supplier realizes 225.000 PLN savings in transportation
- Merchant Card Fees: Improvements are in fact possible along the entire process chain of electronic payment transactions
- Client Interview Decathlon: A winning team!
- 20 percent savings: Decathlon Benelux reduces printing costs significantly
- Manufacturer of ventilation systems achieves savings in freight and energy
- Burger King operator reduces costs with cash-free payments
- BATA: when optimizing the budget fits well with extending the range
Preliminary results of a European-wide survey on cost-saving programs in the field of overhead spending.
European companies control their costs and expenditures in clearly defined periods. This is the result of a study undertaken by EBS Business School in Germany and Expense Reduction Analysts. Based on the study 72% of the companies stated that they periodically control costs. 65% were of the opinion that they immediately react to a deterioration of their cost situation. Almost a third of the companies however prioritize an increase of their turnover over the reduction of costs. Furthermore, the survey shows that companies consider non-core spending an important area. 83% out of 301 companies that took part in the survey said that they had carried out a process in reducing their non-core spending within the past 3 years. One third of this companies used specialized consultancies in that process.
Based on the results of the survey, European companies perceive categories like Energy (43%), Marketing (28%), Logistics (27%) and Freight (25%) as the biggest cost drives and most important areas in the field of overhead spending. Three out of the top-4-categories are within energy-intensive sectors. Other important cost categories are Travel Management (20%), Facility Management (20%) and Telecommunication (19%).
Further content of this issue:
- Polish automotive supplier realizes 225.000 PLN savings in transportation
- Merchant Card Fees: Improvements are in fact possible along the entire process chain of electronic payment transactions
- Client Interview Decathlon: A winning team!
- 20 percent savings: Decathlon Benelux reduces printing costs significantly
- Manufacturer of ventilation systems achieves savings in freight and energy
- Burger King operator reduces costs with cash-free payments
- BATA: when optimizing the budget fits well with extending the range
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Cost Savings Today - 3/2011 |
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The Sustainability of Cost Reduction Processes Overhead Cost Reduction Processes are Important to European Companies |
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Cost Savings Today 4/2012 The importance of long-term supplier relationsIn those times of doubts and economic roller coaster, should companies engage in long-term relationships with suppliers or adopt a flexible approach to client-supplier collaboration? Staying on course and grabbing business opportunities whilst navigating stormy waters is a stressful responsibility for managers which will require them to strictly focus on their objectives and rely on other crew members to help with the more mundane tasks. These “crew members” involve not only in-house staff but external partners as well and there are many benefits derived from a strong and clear client/customer relationship, providing a secure and sustainable advantage. |
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