Efficiency and costs are linked. As efficiency falls, costs increase. Our supply chain experts will re-work processes and drive down costs in the products and services you're purchasing, as an overall. The chances are that most organisations can achieve immediate savings in their bought-in goods and services.

Indirect procurement should be at the centre of the cost management process. We work across categories of indirect spend, using our knowledge and extensive supply chain to identify opportunities to reduce costs.

Delivering Cost Reduction

Key to our cost reduction methodology is working within your business to engage stakeholders and understand needs. We understand that savings delivery cannot work in isolation and frequently involves working with you to achieve overall best value whilst also delivering the strategic objectives of the organisation.

  • Cost Reduction
  • Spend Analysis
20-40%

Indirect spend can equate to 20-40% of total revenues of a company. However, it is quite often unsupported or under-supported by the procurement department, as developing in-house expertise can be challenging and costly. Time - or the lack of it - is often a limiting factor too.

80%

Overhead costs such as property and energy continue to rise and yet in many manufacturing companies 80% of the effort to reduce costs is targeted at direct materials and labour costs.

£150k

A business that achieves a gross profit of 40%, has overheads of 30% of turnover and is able to achieve a sustainable 5% reduction in overhead costs, will increase operating profit by 15%. On an annual turnover of £10m that's a £150k bottom-line improvement; the equivalent to reducing the cost of sale by 2.5%, often a much more difficult task.

THE BUSINESS CASE FOR COST MANAGEMENT & REDUCTION

Simplistic, but it illustrates the need for a structured and consistent overhead cost reduction and management programme, ideally within a wider business improvement process that enables organic growth, acquisitions and working shareholder exit strategies.

Of course overhead cost reduction is not a given but what is certain is that 100% of our effort is expended on seeking ways in which we can reduce costs and increase the profitability of your business.

Cost Reduction

Indirect Procurement Spend Analysis

Comprehensive spend analysis is the stepping stone to a successful strategic procurement and cost reduction strategy. The first step in any spend analysis is to justify with logical reasoning current spending.

As part of our cost reduction and cost management solutions, we'll help you collate, cleanse, classify, rationalise and report on categories of indirect spend. Our aim is to deliver the strategic objectives of the organisation and to provide accurate, actionable information and visibility across the business.

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Benefits of Procurement Spend Analysis


Rationalise Expenditure

Justify, with logical reasoning, current spending.

Reduced Maverick Spend

Keep control of who is spending what and what on.

Contract Management

Increased visibility means you're able to monitor SLAs accurately.

Better Compliance

Remain and/ or become compliant across areas of indirect spend.

Reduced Supplier numbers

Improved tail spend performance and efficiency across departments.

Lower Procurement Costs

Personnel can focus on management reporting and development.

Improved Processes & Efficiency

Across procurement, finance and the business as a whole.

Cost Management

Support the development of a strategic procurement function focused on savings delivery.

Supplier Relationship Management

Deliverable SRM benefits after the initial engagement.

Service & Product Cost Reduction

Like-for-like cost reduction for your indirect spend.

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