We cannot do much about the first one. The second depends upon your accountant! For the third, rising energy costs, please read on…
Chris Allison Managing Director of Auditel, a leading UK cost management consultancy, says: “The cost of energy affects every organisation from charities through to manufacturing, schools and professional firms. Everyone anticipates continuing increases. However management of this essential business cost need not be a minefield for those with access to the right skills and expertise.”
This is borne out through an independent survey commissioned by Auditel and undertaken by Haymarket Media to which over 120 business leaders responded. The key findings suggested that lack of understanding is the greatest obstacle to cost management and 70% of organisations do not have a strategy in place for this vital aspect.
Allison argues therefore that organisations should be turning to professional consultants for their advice. He suggests that many could witness typical savings of 30% on their energy costs. “We have just completed a survey for CDW Systems, a leading UK manufacturer and supplier of aluminium windows, doors and conservatory roofs. Their Managing Director says: ‘I feel compelled to write and thank you for helping us save thousands of pounds on our electricity bill’. Here are some more examples.”
Founded in 1906, Prettys is a law firm based in Ipswich and Chelmsford. Their commercial law experts provide wide-ranging advice to business from all sectors They work with clients locally, nationally and internationally, including many London-based organisations. Head of Operations, Jerry Norman, realised their costs could be managed more efficiently by engaging the external specialist knowledge and resources that Auditel could provide.
For electricity, competitive tendering over three years led to savings of 38% (£21,000). For gas, similar investigations have resulted in impressive reductions of 43% (£13,000).
While working on energy costs, Auditel were also invited to investigate Prettys fixed line telecoms costs which resulted in a saving of (31%) £31,000. New projects are planned such as a review of rental contracts and streamlining the number of suppliers, to ease the burden of administration. This positive relationship between Prettys and Auditel continues to develop.
Jerry Norman comments: “We were looking for a way to improve our focus on the cost of overheads and achieve a better return on investment from our suppliers. We assigned Auditel to take over our utility projects and are delighted with the results.”
Electricity £21,000 38%; Gas £13,000 43%; Fixed line Telecoms £33,000 31%
Framlingham College is a co-educational boarding and day school for pupils aged 13-18 in Suffolk and has approximately 425 pupils. Nick Chaplin, their Finance Director was attracted by the local, established and recommended service Auditel offered.
Nick saw in Auditel the opportunity to have their complex cost, purchase and supplier management handled professionally, thus saving the School a considerable amount of time and money. Results are shown below with additional savings on lighting and more to follow.
Nick Chaplin is delighted: ”Prices have risen dramatically over the last few years and I hate to think where we would be now, if it had not been for Auditel.”
Electricity £65,000; Gas £19,000; Water £4,000; Fixed line telecoms £7,100; VAT Refunds
on Electricity £32,000 and Gas £3,000; Climate Change Levy £26,000
Auditel especially enjoy working with charities. Target Housing is a South Yorkshire-based charity which has been providing accommodation and support to homeless and vulnerable people for over 21 years. They delivered savings of 37% on gas and 31% on electricity and followed that up with a formidable 65% on both fixed line and mobile telecoms. Their Chief Executive said that it would be impossible for us to achieve the results that Auditel have delivered.”
Allison says; “Every month, year in and year out, we are saving tens of thousands of pounds for small, medium and large organisations on energy. If you too want to have peace of mind amid these spiralling costs, start with our Auditel Business Health Check.