The UK’s largest cost management consultancy, Auditel backs latest research that 7 out of 10 UK businesses blame rising costs as the biggest threat to their revival.
The bi annual barometer says ‘volatility across the Eurozone and negative GDP growth has forced nearly 70% UK companies to refocus their corporate lens on cost reduction and supply chain transformation in a bid to stave off revenue and margin pressure.’
Auditel’s Managing Director, Chris Allison says Auditel’s consultants are constantly being called on by UK business to help them not only reclaim unnecessary charges retrospectively, but to redesign their procurement services to keep the lid on future costs.
He says Ernst and Young’s latest UK capital confident barometer reflects a worrying trend of businesses fearing the worst and seeking expert analysis to keep afloat in unprecedented difficult times. They also know they haven’t got the ‘in house’ capability or supplier relationships to make changes – something KPMG calls the “Capability Gap”.
Allison says , “Auditel’s Total Cost of Purchase® Model has saved one of the UK’s most prominent soft drink manufacturer well over a quarter of a million pounds in the first 7 months of working with them, with a total saving to date in excess of £400,000.
“Auditel has not only made us more profitable, they have also become a sounding board and a valuable extension to our management and procurement teams.” – says their Chief Executive.
“Total Cost of Purchase is not about cost savings, although that’s important. It’s about a holistic and ethical method of securing essential business services that not only look at price, but every aspect of the procurement lifecycle. Employing this model, a highly-skilled Auditel specialist will enable businesses to lower their business costs year-in and year-out”.
It rigorously: –
- Assesses the status and cost of existing services
- Audits retrospectively
- Identifies and claims rebates
- Reduces future essential costs
- Implements recommendations
- Monitors to ensure value is maintained
Allison adds: “In these uncertain times, some businesses are tending to sit on the fence ‘until things pick up’. However, it is salutary to consider a company with a gross margin of 25 per
cent, for instance, making a saving of £100,000. To make an equivalent profit through day-to-day operations, you would have to generate £400,000 in additional sales. Your Sales Director could start to look a little worried…”