MANAGING THE COST OF DOING BUSINESS Paul Copsey , consultant at cost management providers Auditel, looks at solutions to managing overheads L et’s face it, doing business these days is expensive. With the economic downturn hangover still clearing, and Brexit yet to arrive, can stakeholders in profit- led and non-profit organisations throughout the UK afford to carry on with ‘business as usual’? Could outsourcing be the solution? The benefits of outsourcing: • Making good procurement decisions requires inside knowledge and market awareness – an experienced outsourced expert will have those skills.
Newton Commercial Ltd, based in Leiston, Suffolk have been clients of Scrutton Bland for several years. They manufacture interior trim for classic cars, from Morris Minors to vW Beetles to Triumph GT6s, employ over 50 staff and export their products around the world. In 2014 MD Jonny Newton engaged Felixstowe-based Auditel to provide assistance in managing some of their overheads. Auditel are experienced local specialists who work closely with clients to free up resources and optimise their costs, and crucially are independent of suppliers. The results have been more than worthwhile, with savings of up to 42%. However, as Jonny says, “Of course I’m pleased we are paying the least possible for these supplies, but as MD I needed to know we’d got a strategy in place for our costs, and that they were being professionally managed on an ongoing basis. Auditel have delivered that.” So whether you outsource, or manage costs internally, the important message is take early action. Know how much you’re using, how much you’re paying, and when you can next review your supplier commitments.
Positive action is required just to maintain position, let alone grow, and when markets are evolving, slowing or even shutting down completely, all effort must be focused on your core business activities. However this means vital non-core activities, such as cost and purchase management, are often sidelined because resources are stretched, but is this something you can afford to leave until the economy recovers and the EU dust has settled?
• Independent advice will provide honest reporting on what’s best for your organisation. • Access to expertise across a broad spectrum of business cost areas, including communications, energy, business consumables, printing, merchant card fees, waste, fleet management, water, fuel and postage. • A new member of your management team entirely focused on sourcing, implementing, reviewing and managing the best purchasing solutions for your organisation. • Any cost is usually absorbed as part of the savings achieved.
Contact Auditel at paul.copsey@auditel.co.uk or paul.hughes@auditel.co.uk tel 01394 338655 www.auditel.co.uk/connect
A D V E R T I S E M E N T | S C R U T T O N B L A N D | 3 7
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