In our recent Focus on Costs Programme we examined the elements of a professional cost reduction programme – sharing the models, techniques and tactics required. In Recalibrating Spend we home in on some specific opportunities for cost reduction in the here and now. Recalibrate Your Costs: Surfing a New...

In recent weeks our series of articles on Recalibrating Costs for the “next normal” has focussed on Indirect costs i.e. those that aren’t directly related to sales. The Direct costs of goods sold should similarly not be immune from cost-cutting efforts.  There is often a reluctance to pursue hard-hitting reductions...

Covid19 has turned many peoples working lives upside down.  What was once considered normal has completely changed in these unprecedented times. Nowhere is this more starkly illustrated than your business’s company vehicles.  Many fleets have been effectively mothballed with drivers forced to stay at home and face-to-face meetings all but abandoned.  Even...

It is widely anticipated that – accelerated by the pandemic – flexible working will become the norm, and that employees will work significantly greater periods of time from their home office.  The Chief Executive of Barclays certainly believes that large numbers of people working together in a central environment...

It is currently possible to make significant savings in MRO and add incredible value to your organisations by adopting the latest innovations from suppliers.  Do not delay acting as the window of opportunity will not last.  MRO is a spend category which should behave like other aggregated, commodity, high-variety, online...

During our ‘Recalibrating Spend’ series we’ve been urging clients to examine their cost base, particularly in terms of what will be required for the ‘next normal’ rather than what was in place before the COVID-19 crisis struck. What your business ‘does’ – the fundamental concept of your business –...

The speed with which companies have adapted their business models to meet social distancing rules has been very impressive.  In a matter of weeks, we have seen firms of all sizes significantly change how they operate. The change is particularly noticeable amongst those who previously didn’t need to take...

Should Cost Modelling is a Valuable Tool – So, What Should PPE Cost? As a weapon in the armoury of Procurement professionals, Should Cost Modelling is definitely under-used. As Procurement teams seek to become more agile it’s important that the traditional reliance on Strategic Sourcing and Tenders is tempered...

Today we are facing two business certainties and one highly likely scenario.  Firstly, it’s certain that the near-future business climate will continue to be tough. Secondly, although we have some inkling given recent announcements, we don’t yet know what the “next normal” business climate will look like; different sectors will...

It is not breaking news that oil prices have fallen circa 70% so far this year, and that in some cases barrels have traded for negative prices.  It’s also not breaking news, as a result of this, that energy prices have fallen by approximately 20% since the start of...