Home » Expense Reduction Service » Over-Spending Factors

From experience across a broad range of industries, we know that most businesses pay too much for their everyday running costs.

 Five factors are common to organisations which over-spend:
  • unclear or un-enforced policies and standards
  • an absence of in-depth product and industry knowledge for non-core costs
  • inconsistent contract and risk management practices
  • insufficient resources to undertake reviews of all purchasing contracts
  • inadequate systems and processes to achieve optimal contract and procurement outcomes.

Our analysts identify where overspending is occurring on common business expenses using specialised analytical tools. We benchmark current supplier price and service levels against our database of market information and provide indicative data on cost savings which we consider can be achieved through a market review. We propose a plan, undertake a market review on behalf of the client and then implement the agreed expense reduction option.

But our work doesn’t end there – we stay the distance to ensure the new supply arrangements work and both parties meet their obligations. We put into place service level agreements (SLAs) with key performance indicators (KPIs) and monitor the performance of suppliers over an agreed timeframe and rectify any service problems which arise.

Depending on the cost management solutions and options chosen by our clients, cost savings ranging from 15% to 70% have been achieved on goods and services purchases: average savings have been approx. 30%.  Where clients have implemented our procurement and contract management software solutions, direct and indirect efficiency gains of up 92% have been achieved.