Where to find savings
The hottest expense reduction areas that we are looking at for clients are indirect expenses. These often-overlooked costs often do not receive the careful attention more often given to direct expenses. We often uncover savings potential in areas over which companies typically believe they exercise sufficient control.
Indirect expenses include supplies and consumables both on the services side and the goods side. Examples include janitorial cleaning supplies, office supplies, security services, background check services, construction costs, and other expenses.
Most companies consistently obtain quotes for these kinds of indirect costs. But is obtaining quotes really enough? Aberdeen reports that involving a sourcing professional in conducting the RFP could save as much as 10% additional savings.
Strategic sourcing goes beyond obtaining quotes. Involving all stakeholders, developing a plan, and conducting a spend analysis are just a few of the areas that make a strategic sourcing process very different than obtaining quotes. Let us examine your spend data and see what opportunities that we can uncover.
Our clients typically reap three times in savings than the amount we charge for our services.
Questions for buyers
- What are the steps of your sourcing process?
- How do you involve the right team?
- Does senior management recognize that your sourcing process is different than how other departments are currently buying?
- How do you ensure contracts are not just auto-renewed?
- What percentage of total spend does your group currently manage or influence?
- How do you track and report savings to senior management?
- How deep does your spend analysis go for each spend category?
For more information, please contact email@example.com
Resources: Why involve a sourcing consultant?
- Indirect expenses – Financial Dictionary
- Indirect costs; indirect vs. direct costs – Wikipedia
- What are indirect expenses? – Accounting Tools
- Request for proposal – Wikipedia
- How To Write An RFP – About.com
- Strategic sourcing – Wikipedia
- What is Strategic Sourcing? (PDF) – University of Michigan
- Supply chain management – Wikipedia
- Procurement – Wikipedia
- Global sourcing – Wikipedia