How are you doing on Cost Reduction

How are you doing on cost reduction? 45% 84% of workers say their company is of CEOS said cutting costs is the number one priority for their making cost effective efforts.2 procurement team But that these cost effective efforts have COSTS negatively impacted on the quality of their goods and To counter that 85% will look at investment on: Specialist technology Specific buyer recruitment Staff training 50% of CFOS that generate at least 70% of their revenue in the UK see cutting costs as a priority 70%, of revenue in the UK 70% of them expect margins to decline in 2012 Understanding your spend is the start to reducing it 51% tackling the small spend items and consumables for one company unlocked immediate savings of 11% 8% YET of businesses understand that cost transparency is important The prime focus for companies is the top line- with 57% of respondents stating increasing sales as a priority. on a typical industry profit margin of around a business would need to ..to make the same generate sales of a quarter of a million pounds. bottom line impact as cost savings of just £20,000. unluul Figures from smart meter readings of businesses do 30% not know the notice period of their suppliers' show that 46% of 46% business electricity use occurs after the usual working hours of 8am-6pm. contracts. of businesses say of this group say they don't have time to reduce costs that lack of 40% 29% negotiating skills were a blockage in reducing costs because they are too busy with the day job. of this group of those think it's surveyed intend to use a 50% acceptable to pay a fee of up to recruitment 15% of an 61%, consultant this employee's salary. year Most SMES don't Industry research shows every £10,000 you spend on your office supplies £10,000 have someone formally responsible for reviewing any reporting costs in a structured way .8 actually costs your comapny £14,000 ..... Challenging how and why you buy IS CRITICAL Implementing an effective Purchase to Pay system can bring savings of between 20-50% in sectors as varied as Office furniture I.T Facilities Management Stationary Just reviewing your photocopier contracts could reduce your costs by as much We identified immediate cost savings of over £45,000 depending on your print volume. o . £300,000 £180k by consolidating one companies spend on bottled soft drinks alone. Contract reviews and audits on historical payments to suppliers has unlocked one saving of £180ok for a client. Asking one supplier 'what would you do if you were me' led to cost saving of 14% on BAKERY ITEMS no one had asked before.... You might be buying well, but how can you start to buy even better? Ask HAWTREY DENE to pop in for a coffee and find out how we can help. White, no sugar... By the way. REFERENCES: www.hawtreydene.com, www.electricdialogue.com, http://.supplymanagement.com, http://www.deloitte.com, sight bt.com, http://www.utility- hange.co.uk, http: QUALITY OF Gg COST