If you are serious about reducing risk and building a sustainable business then it pays to look for ways to take control of your fixed spend. Those people in your company who are responsible for ensuring expenses are effectively reviewed and bills are paid in full are in fact correct without question meaning no harm, of course; but without minimal oversight, they could potentially do a lot of harm!
The demands on today’s Chief Procurement Officers (CPOs) continue to escalate and the expectation of doing more with less is a constant, regardless of industry or customer base.
Deloitte’s Global CPO Survey for 2016 revealed a wealth of information about – and for – today’s CPOs, but one statistic that really stood out was the claim that 74% of CPOs see cost reduction as their number one priority. A study by PwC also found that approximately 50% of CEOs see cost reduction as a key strategic driver this year, too.
But this doesn’t seem to match the actions of many enterprises. There are still a substantial number of organizations lacking a comprehensive spend management strategy, indicating that their commitment to cost reduction is inefficient, sporadic or non-existent, regardless of what the executives say.
As much as 20% of an organization’s overall spend is unmanaged. So for an organization with an overall annual spend of $3 billion, some $600 million of this spend is uncontrolled and unregulated.
If C-Level Executives alike continue to allow such a vast amount of spend to be allocated with little or no oversight and control, how will they really be able to reduce costs and achieve savings? And how can cost reduction really be a top priority if this unmanaged spending is being allowed to continue?
Combating the Cost Reduction Paradox
If you’re looking to set yourself apart from the rest of the pack, and improve profitability and productivity in your enterprise, it’s imperative that you focus on a comprehensive spend management strategy that includes every aspect of your overall spend, with a goal of achieving 100% managed spend. It’s not just a procurement pipedream – it can be realized by working with the right team and the right tools, and effectively measuring your systems and progress.
Where to Start …
Every spend management program has to have a starting point, and a thorough spend analysis program will enable you to measure where you are today, as well as mark your progress as you implement your spend management program. A spend analysis enables you to share your success with the rest of the organization, and is an important part of creating an effective environment that you can duplicate as needed.
At LIMITLESS we are your trusted partner and understand how to best help our Clients reduce costs, while ensuring you stay highly effective and efficient with your services. We strive daily to help you become more financially sound, putting more money back in your wallet. The average savings we find our clients is between 17% – 36%.
We have saved companies tens of thousands and even in some cases millions on their telecom, utility and vendor expenses with our proven cost reduction process.
At LIMITLESS we use our Powerful Process to identify cost savings, improving and negotiating contracts, finding billing errors and recovering billing errors. Our Proven Results allow our Clients to reinvest the “savings” into growth initiatives or apply these “found profits” to their bottom line.
Our clients realize that they derive the most benefit by concentrating their efforts on their core service or product. Most business people simply do not have the time or in-house expertise to analyze technology, suppliers and pricing alternatives.
Contact LIMITLESS today for a FREE CONSULTATION to discover how to get control of your unmanaged spend and reduce expenditure on business services.
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