Make Reducing Business Costs a New Year’s resolution you can keep!
The New Year’s not just a great time for personal resolutions, it’s also a good time to re look at your business strategies. Often business overhead costs get shoved to the bottom of the pile, particularly when time is pressured. But actually procuring these services well can really add to an organisations profit. The trick to reducing business costs, and keeping them low, is “Cost Management” rather than “cost reduction”. Sounds similar, but the difference can be huge. Focusing on reducing your business costs can increase profit significantly when done correctly as part of a strategic process.
Chris Allison, MD of Auditel states “The major challenge will be moving from a simple cost reduction exercise to more strategic cost management. It’s not just a matter of looking at historical data, tendering that out and then getting a better result. Cost reduction is the first part of the process, but you need a strategy in place to make sure you monitor those costs on an ongoing basis. You need the right tools and knowledge base.”
He adds “Most businesses focus purely on a cost reduction exercise. That means that they get the initial savings, but these are not monitored, and you start actually getting price increases. These costs go flooding back into the business and all their hard work comes to no avail.”
So, the trick is to resolve first to bring Cost Management to the top of the agenda as a New Year business resolution, and then to make sure it is done as a strategic process. Few organisations have the people, tools or knowledge to effectively manage their costs and deliver sustainable profit improvement, and this where Auditel can help. Outsourcing your cost management to Auditel can reveal real cost savings, reduce waste and free up in-house resources. Auditel can help organisations in over 80 cost areas including energy, energy management, water, waste, telecomms, business rates, merchant cards, stationery etc
If you’d like to get Auditel involved in your cost management process, or simply understand more about how we work, we’d love to hear from you. You can contact us to discuss, with no obligation, by calling Mike on 01454 614511 or email email@example.com