Managing cost is all about buying in large quantities, putting suppliers under pressure to provide better terms, or simply going to an internet price comparison site and changing supplier.
Or is it?
After nearly 20 years in the field of overhead cost reduction, I’ve formed a somewhat different opinion. In any business, success comes through continual focus and attention to detail above all else. Knowledge, skills, planning & luck may all play a part but keeping focus in an almost obsessive way is what makes a long-term difference.
Being able to focus quickly depends on the practice that comes with regular scrutiny, and the experience of recognising the various trip-wires that have caught out the unwary in the past.
Maintaining focus is how results are delivered and sustained. It is often the case that business overhead costs in a traditional commercial environment only get attention in the period immediately preceding contract expiry. There is a risk that focus dwindles from time to time, perhaps even because of a particular success which has been celebrated. Heads turn away, focus is relaxed, and within a few months the benefits are starting to fade, problems crop up, and the person who did the work has moved on to another role or left the company. Ongoing focus on cost management is the key to achieving a lasting return.
Having a trusted advisor to apply that focus and scrutiny then bring in market intelligence and supplier influence – that is where Spncr. Business Cost Reduction comes in.
There are many more aspects to the entire cost of purchase than simply obtaining the best unit rates at contract renewal time - and not all unit rates are what they seem! As well as the cost of researching the market there is the cost of tariff analysis , understanding contract terms and conditions, implementing the solution, checking supplier invoices, taking up complaints with suppliers, and monitoring supplier performance.
Spncr. Business Cost Reduction works on a meticulous, auditable, self-financing basis. By implementing solutions then monitoring their ongoing effectiveness, we also ensure that clients benefit from the informed opportunism that brings potential for further savings even after any initial gains.