saving your business time and money
In this issue:
We just spent 18 months reviewing and cutting costs and have shaved off 15%!!!
We hear this all the time from prospective clients and our response is - Well Done!
The congratulations are for the result, a 15% saving; however, this ignores the time and effort involved.
What has to be considered are the efforts of internal personnel:
· Analysing what is purchased, the procurement process and actual costs, and
· To propose and implement the future initiatives
The costs here can be huge in terms of salaries, employee on-costs. All this can mean that the 'cost saving' has not made any savings at all!
How does this compare to the 15% saving?
Another option is Outsourcing, defined as:
The transfer of a common business processes, that does not add value (contribute to revenue) to a specialist, that has developed a systemised approach. The aim is usually to cut costs and improve efficiency.
For example, many organisations Outsourced the processing of their payroll*. Here, it is essential to ensure accuracy and completeness and there is no added-value to operations by payroll being undertaken by internal staff.
In addition, the key advantages to Outsourcing is that tasks are undertaken to guarantee service levels and what were fixed costs become variable cost that can be better managed.
*For payroll processing at £2 per payslip call David Davis on
0800 652 2642.
As a charitable organisation ... we must minimise the money spent on our own internal operations.
Total Purchasing Solutions has showed us savings of between 20% & 50% in three cost areas. Further, to achieve these savings has not distracted our staff from their day-today roles.
Colin Middleton
Treasurer
Islington Citizens Advice Bureau
Outsourcing to Total Purchasing Solutions
Working with Total Purchasing Solutions is effectively Outsourcing the search and implementation of best in class and best value suppliers of non-core expenses or overheads.
In addition:
· The average saving achieved is currently 22%,
· The supplier search is completed within 4-6 weeks,
· The service is effectively free, in that any fee is paid from the savings generated.
So, for real and guaranteed savings in the most efficient and cost effective manner, call David Davis on 0800 652 2642.
There are five utilities - electricity, gas, water/wastewater, fuel and telecoms. Telecoms were covered in a previous newsletter (for a copy, email the words 'Telecoms Newsletter' to telecoms@totalpurchasingsolutions.com). Today, we will look at electricity and gas.
To put it mildly we are in a rising market for electricity / gas with prices moving upwards on what seems to be a daily basis. This is due to many factors including - concern over oil supply, conflicts in oil supply regions and not least the profit aspirations of the utility companies. Often, it is 'how can we reduce the price increase?' rather that 'what savings can be made?' However, there are steps that can be taken, including:
1.
Be prepared: Do not start looking for alternative quotes days before a current supply contract expires. There are 2 reasons:
· A possible termination clause requiring upwards of a 90 day notice period
· To obtain alternative supplier quotes can take as long as 2 weeks
2.
Be early: Reviewing the supply of electricity / gas is an ongoing process. By this it is ensured that prices are tracked and the service differentiation between suppliers is known.
3.
Be flexible: It is not just about looking to reduce the unit cost of electricity / gas. Most organisations will be able to make considerable savings in the number of units used by undertaking various energy saving initiatives.
4.
Be available: Price movements are happening on a daily basis and a quote offered at 10:00am can be withdrawn at 12:30am on the same day. So, know what you are looking for, set a budget and plan to take immediate action.
For help with the control of utility costs in terms of both price
per unit and improving energy efficiency, call David Davis
on 0800 652 2642.
Total Purchasing Solutions -
Saving time and money for your business
To find out how to turn your overheads into cash
CALL FREE ON 0800 652 2642
www.totalpurchasingsolutions.com
Trafalgar House | Grenville Place | London | NW7 3SA
