Auditel Consultant:
Simon Beechinor

Cost savings

07 Sep 2010 | Filed under: Cost management

Research shows that a business will typically only save about 50-60% of the available cost savings when undertaking their own internal reviews. External cost management, which is performance based, is often required to find and secure the remaining 40-50%.

Many CEO’s will accept a 5-10% cost saving as “good news” without realising that considerably greater savings might be available. It is human nature to accept that “good news” without question, as any saving is welcomed in a board or management meeting – but a little gentle probing can reveal much more…

The only way to find out properly is through independent audit and benchmarking – when these processes actually cost nothing to implement, there is no reason not to check out Performance Based Procurement with Auditel.