Growing Revenue vs. Reducing Expenses
We recently had an inquiry on our position that most times reducing expenses is a much quicker improvement to the bottom line compared to growing sales. In reflecting upon this, let me share with you this example: Currently w/ Expense Reduction w/ Additional Rev Revenue $100,000 $100,000 $140,000 Expense Reduction % 0% 20% 0% Operating Margin % 10% 10% […]
Contract Compliance: Driving Sustainable Cost Reductions
In today’s economic times, driving sustainable cost reductions is just one of many challenges, and driving them through contract compliance is sometimes an overlooked opportunity. Nearly every organization has experienced “creep.” That is my term for what happens to the savings a vendor promises that never materializes. Some might call it savings leakage or deliberate contract manipulation. However you describe it, […]
Is Your Business Costing You?
A study commissioned by the Expense Reduction Analysts’ Centre in the UK in September 2009 polled more than 1,300 board directors and senior managers. The participants said their organizations had not employed any cost reduction programs for business expenditures in the past six months. Furthermore, nearly half (46%) had not conducted any contract renegotiations with suppliers in the past year, […]
Sustainability: A Popular Cost Savings Solution
Recently, Business Week published an article on the tangible impact of sustainable business practices and why they are becoming attractive for CEOs. The intangible impact can hardly be ignored either as both provide cost savings. Sustainable business practices are what many consider “out-of-the-box” solutions. Many times, the return on this type of solution is comparatively substantial to […]
Spend Analysis: How Does Your Company Compare?
“Failure is not fatal, but failure to change might be.” – John Wooden Recently, I was researching spend analysis and came across a study completed by the Aberdeen Group. Although the findings were released September 2004, I believe they are still very applicable: Spend data management is critical for supply management and business success. Insufficient visibility […]