Recalibrating Spend: 10-part Series Posted at: September 7, 2020 Posted in: All, Recalibrating Spend 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 Wave The cost-base you were able to sustain before the COVID-19 shock is not the cost-base you will need to drive through recovery. We provide some insights to what is possible and some examples of cost reductions by category. Read More> Energy Cost Shock Awaits the Ill-Prepared Oil and energy prices have come down as demand has fallen during the crisis. However, what goes down will inevitably bounce-back – particularly as the costs of re-starting oil production is taken into account. Don’t be caught out! Read More> Build a Winning Mentality – Start a cost reduction Quick Wins programme today Cost reduction programmes deliver to the bottom-line, immediately. Quick Wins free up cash, are low complexity and consume low resource volume – and they create momentum and a winning mentality. Read More> Should Cost Modelling 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 with some other tools. We provide an illustration using Personal Protective Equipment. Read More> Merchant Card Services – it’s now time to reduce costs and improve cashflow As many firms have had to rapidly adapt their business model to deal with crisis conditions, this has included use of online payments. Many companies, in the interest of speed, choose ‘all in one’ providers – but this could be at a high costs and come with a slow cash release time. Read More> DIY or Do it Differently? Examining your cost base shouldn’t just stop at looking at the current state of your business. What your business ‘does’ – the fundamental concept of your business – shouldn’t escape scrutiny. Read More> We Need to Talk about MRO Savings … once in a generation opportunity It is currently possible to make significant savings in Maintenance, Repair and Operational Supplies and add incredible value to your organisation by adopting the latest innovations from suppliers. Read More> Home Working and Mobile Devices – Risks and Opportunities 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. Whilst this brings great opportunities, it also creates risks – with security being just one area of concern. Read More> What to do when your fleet is stuck on the drive Many fleets have been effectively mothballed with drivers forced to stay at home and face-to-face meetings all but abandoned. Even some essential services fleets are operating on a restricted schedule until the lockdown is fully lifted. So, what should you do to reduce and recalibrate costs, if you have a leased vehicle fleet which is likely to be under-utilised? Read More> Direct Costs are not immune… Most of this series 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. Read More> If you have any questions about any of the articles or have case studies using these ideas or merely want to discuss how these concepts can be applied to your business – please do not hesitate to contact me: Jonny Michael CEO JMCL Consulting
