|
|
In
this issue:
This month's key
questions
Benefits
Guest
Section
Testimonial
Tip of the
Month
|
As a
business succeeds in increasing revenue the impact of rising operating
costs can mean that net profits are flat.
The
recommendation is for ‘Cost Reduction’ programs to be introduced to ensure
that cash and profits do not seep
away. Such initiatives can be conducted internally or using a
specialist such as Total Purchasing Solutions.
Total
Purchasing Solutions is about enabling organisations to achieve
this -
providing the means to
manage costs.
Average
savings achieved are over 22%
|
|
|
|
|
TESTIMONIAL
We
appreciate the non- intrusive way you were able to
obtain the data needed and for ensuring the smooth transfer to new
lower cost suppliers, all of which are providing excellent
service.
Tom
Wilson
Finance
Director
Phillips
Folis Ltd
|
KEY
QUESTIONS
When was the last time you
checked the billing accuracy from one of your suppliers?
Innocent mistakes can cost
you dearly.
MONTHLY
TIP
If
everything's under control, you're probably going
too
slow.
Mario
Andretti
The same exists in business
- what Total Purchasing Solutions can do is work with clients so they can
work faster.
|
|
Why
Manage Costs?
|
A. |
£1 spent is £1 of lost
profit - to compensate for this an extra £5 of revenue may be
required |
|
B. |
Being cost conscious
is not just penny-pinching, it is an awareness that feeds into
operational efficiency |
5
Tips for Successful Cost Management
|
1. |
Know
what costs to reduce – simply
put reducing costs is often a percentage game with a focus on the
areas of significant expenditure. A 10% saving on an £80,000
telecoms bill is more appropriate than working towards a 25%
reduction on the £5,000 spend annually on vending
machines. |
|
2. |
Time
is money - we are talking
about operational expenses that are incurred on a daily basis.
Act now or cash will leak away. |
|
3. |
Have
a system – you identify the
key cost area and know that immediate action is required. What
is the first step? Who will collect the data? Who will
interview alternative suppliers? What additional authorisation
is required before changes are implemented? You must develop
and follow a project plan. |
|
4. |
Know
what can be achieved –
everyone is busy. So who will be responsible for the role to
reduce costs? It may be more efficient to hire in an expert
who works to a tight deadline and is incentivised to deliver real
results. |
|
5. |
On-going
monitoring – measure the future
savings as initially any new supplier knows that they must
perform. The key is to check that after the ‘honeymoon period’
prices do not creep up whilst service levels
fall. |
|
To discuss how you can
implement a ‘Cost Reduction’ program call
David Davis
on 0800 652
2642 |
|
|
|
|
Guest
Section
This issue
we look at VAT. An incredibly technical area in which the
appropriate business partner can bring significant
benefits.
The
VAT Consultancy
Are you aware of ALL
the opportunities for saving or reducing your VAT bill?
THE VAT CONSULTANCY
has been successfully helping clients to do just that by providing
practical solutions, which have generated significant on going
savings and refunds of previously paid VAT. Clients range from large
corporates to the small professional advisor.
Full details of the
complete range of services provided can be found at
their
website www.thevatconsultancy.com
or contact
David Davis at Total
Purchasing Solutions on 0800 652 2642 |
|
Total
Purchasing Solutions - Saving time and money for your business
|
|
