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What are 3 Biggest Challenges in Cost Management?

By 12th February 2012August 11th, 2022No Comments



Posted by: Paul Foster

The 3 biggest challenges organisations are facing related to cost management are:

1. A lack of management commitment and support

2. Too many overhead cost categories to analyse and manage

3. Resulting in limited visibility and control over non-salary costs

Organisations have invested their budgets in payroll, credit and collection, decision support, and various other systems, but have spent little or nothing on cost management systems to manage and control their non-salary expenses. Why?

Management continues to look for quick wins and simple solutions to control operating costs, instead of realising that their operating costs need to be managed continuously – THIS IS NOT A ONETIME EVENT!

Most organisations are affected by circumstances and are reactionary in nature. If organisations are really serious about sustainable cost savings and cost leadership, they need a systematic and scientific approach, not a onetime event when cash flow or income is squeezed.

They need to invest or outsource to an organisation that provides access to:

1. Best market pricing across over 80 categories of expenditure

2. Strategies, proprietary tools and procurement techniques with guaranteed results

3. Focus, commitment, visibility and control over non-salary costs

Find out how you can become more competitive, beat your competition and increase profits. Contact Paul Foster  or call on 07964 623920 or 01908 990017 for more information.

Started in 1994, Auditel are the UK’s leading cost management consultancy.