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.
Just so that you know …
EDF announces 2.6% increase in some of its electricity tariffs – Electricity – News : Utility Week.
Anyone from the the shipping industry can tell you that fuel consumptions are checked daily – any anomalies are instantly checked and variances understood. In an ideal world it follows that all businesses as well as consumers should be in a position to check their energy consumption on a daily basis.
However, we live in a world of RealPolitik and if all businesses and organizations simply started monitoring energy consumption on any basis then that would be a great start. It isn’t smart enough to simply say that “consumption is what it is” – Auditel can put a business in the position of knowing that “consumption is what it should be”.
If you could do with help to offset this problem, why accept a “DIY” solution to cost management? Our largest saving within August to date is 53.7%….
Small business continues to suffer from lending squeeze – Telegraph.
Every business needs to prepare for this new world order by getting a grip on costs and that includes weak credit control – If a business doesn’t have its’ creditors under control it is effectively providing a relaxed credit line to those businesses. Rest assured if you are running a business and you are weak at credit control – your customers will exploit that weakness.
My advice is to be very clear with late paying clients – tell them when you will call next, tell them you will escalate your concerns to your contact’s boss, tell them you will start formal debt recovery procedures … whatever you tell them you are going to do – DO IT! If you are weak and ill-disciplined in your credit control then your weakness will be exploited. Your customers will come to respect your efficiency, even if they might not like it.
Every day that you permit a bill to remain outstanding is an unofficial soft loan that you have just granted your customer. Are you in the lending business?