Evaluating Spend Control for Managing Directors
The primary objective of "Spend Control" is to enable organisations to reduce costs and increase productivity by taking control over the way a business buys goods and services. The savings are substantial and the productivity improvements impact a very large number of staff.
Is this relevant to you? Try answering the following 5 questions before you decide.
Questions for the Managing Director / Shareholders:
- Question 1: If your business could save, for example, between £200k - £1m every year, what value of additional sales would be required (after the cost of sales) to achieve the same impact in profit and improved cashflow?
- Question 2: How much cash would be saved if all maverick (unauthorised) over-budget spending was eliminated?
- Question 3: The savings are delivered through automating and controlling the way the company spends its money, then paying less for what it already buys. Who would you expect would take the initiative to investigate such an opportunity? Is it you, the Finance Director, the Procurement Manager, someone else or nobody? FYI, in most organisations no individual has the responsibility to even investigate the opportunity.
- Question 4: Whilst most organisations are reasonably proficient at managing high value / strategic procurement (and therefore perceive that procurement is under control), who takes responsibility for low value, high volume and non-strategic spend? In almost all businesses of whatever size, this is usually completely unmanaged. The result is multiple suppliers for similar goods and services and premium prices being paid for most of them.
- Question 5: If you could save between 10% - 25% on the unmanaged spend PER ANNUM, with minimal effort, who would be responsible for investigating the potential?
How much could your business save?
How much could you save the business?
Compleat would like the opportunity to quantify the savings potential we would deliver as we are confident that you will be very surprised.
Request a 15 minute a telephone call to find out more or book a free spend review meeting (at your offices) to quantify the potential costs, savings and ROI by filling in the form below.
You should expect the hard cash ROI to be between 4 and 12 months, after which the savings are just more money in the bank and improved profitability.
Is that worth an hour of two of your time?
Simply fill in the form below and discover how much you would save: