First Quarter 2012 Brings 73 Profit Warnings20 Apr 2012 | Filed under: Cost & Purchase Management
Posted by: Paul Foster
A rollercoaster of profit warnings marked the first three months of 2012 according to Ernst Young. The flurry of warnings in the opening weeks of 2012 is caused by renewed fears that euro zone problems will further impact consumer and business confidence.
Spendthrift Britons Rediscover Virtues of Saving
But things are about to get much worse. According to the IMF spendthrift Britons will rediscover the virtues of saving during the next few years. A near 40-percent increase in the scale of British savings during the this decade is on the cards. In troubled times people hang on to their cash even if it makes little economic sense, look at the mid-Seventies when inflation was soaring as high as 26% interest rates were negative and the value of people’s savings were reducing-year-on-year, bit like it is today, albeit with lower inflation and lower rates.
So we are progressing from an environment where businesses have been hoarding cash to one where consumers will be doing exactly the same.
This signals a very difficult decade growing business income and highlights the rapidly growing need for better cost management. The fact is that many organisations are not up to the job: See an excellent article by one of my colleagues here
So the needs to outsource this to professional cost and purchase management experts has never been greater.
Procurement Outsourcing is the Answer
Established in 1994, Auditel is the premier independent cost and purchase management consultancy in the UK, with over 200 fully-trained specialists. With over 3,800 satisfied clients on our books, we can safely say that Auditel’s brand of sustainable and ethical cost and purchase management is playing a pivotal role in that equation.
Our Total Cost of Purchase ® approach is a holistic way of reducing and managing the costs of doing business. It enables organisations to lower their business costs year-in and year-out. Our Business Health Check examines all expenditures associated with making effective cost management decisions. Best of all, our performance-driven contingency fee model, means the comprehensive specialist service is totally self-funding.
There are no up-front fees, no hidden charges and no extras.
For 2012 I would encourage firms to contact me to see how you can benefit from this more intelligent approach.