Make your cost-reduction programmes succeed
December 12, 2009
Tags: Cost-reduction programmes, outsourcing
In ‘Surviving the Downturn’, the Institute of Chartered Accountants offers this advice to directors and advisers. ‘Now is a good time to review your cost structure. If you need to make savings, examine carefully how you can get the best value out of your business, enabling you to emerge leaner and fitter.’
Yet, accountants KPMG reveal, ‘although businesses are under constant pressure to reduce costs, many find it hard to do so in a sustainable fashion. Nine out of ten cost reduction programmes fail to achieve their targets, and the gains that are achieved appear to be short-lived. One of the single biggest barriers to achieving these targets is the lack of adequate processes within organisations to drive cost reduction.’
That’s why with an Auditel trusted adviser in place, our clients confirm that it’s like having an additional dedicated management team working for them. We quietly take care of all your complex cost and purchase management issues, leaving you to focus on your core business. What’s more, because we work on a contingency fee basis, there are no up-front investment costs, no resources tied up in a project waiting for results and no hidden charges.
Many companies are now turning to outsourced providers of cost and purchase management.
Chris Allison, Managing Director of Auditel, the leading exponent in this field, explains: “Effective cost and purchase management is intelligent and ethical and leads to sustainable growth. It should not be confused with short-term cost cutting exercises that treat problems in isolation and put clients, staff and society at risk.”
Here are some recent savings made by our network:
Mears – Business Support Services
Electricity: £24,000; Electricity rebate: £8,500; Communications: £49,000; Communications rebate: £10,500; Gas: £1,300; Gas rebate: £300; Water rebate: £400.
Total savings: £94,000
Whiting & Partners – Chartered Accountants
Communications: 33%; Electricity: 23%; Gas: 13%; Office supplies: 25%.
Total savings: £100,000+
The Commonwealth Club – Private Members Club
Electricity: 52.5%; Gas: 42.3%; Fixed Communications: 44%.
Other savings include £48,030 for housing association charity CCHA, £122,900 for Haileybury School, £54,496 for the National Motorcycle Museum and last but not least, over £4 million for Pizza Express in a thirteen-year period.
As Dean Styger, Finance Director of Talacre Beach Leisure Group reports: “I am continually amazed by the breadth of knowledge and business experience Auditel have within their organisation. I have no hesitation in recommending them.”
Give yourself a present and call 01554 770816 or email Auditel for your free business healthcheck. We enjoy playing Santa…
I wish you a very Happy Christmas and Prosperous New Year!