How to save money in different cost areas

21-Jun-2019


Many major UK businesses are currently experiencing turbulent times. Uncertainty surrounding Brexit and government direction is compounded by domestic economic concerns, which is seeing many stable industries experience notable difficulties. During these times, it’s vital that businesses begin to evaluate their internal procurement procedures.

Reducing expenses can provide businesses with much-needed stability at a time when markets are becoming increasingly unpredictable. Moreover, the capital freed through such measures can be put into further investments, ensuring the company is well prepared to succeed not only now, but long into the future.

Expense reduction analysts are experts at helping businesses reduce their costs through streamlining supply chains. Our procurement experts have years of experience at the top of a range of industries, allowing them to help major businesses refine their procurement strategies long-term. Using their experience, here are some basic ways that companies can reduce their outgoings in a range of cost areas.

Banking and financial services

Commercial financial services are a must for all major businesses. Covering everything from investment and tax to insurance, these key components help a business to run smoothly. However, there are many cases where companies are using a service that is not the best value for them, while there are often various providers to choose from. Create a comparison between services and check that you are getting the best deal possible from your current providers.

Corporate services

When it comes to daily office and admin management, many businesses look to strike a balance between in-house and outsourcing. It is vital that companies outsource effectively, making the most of their budget while also carefully considering in what manner specific tasks should be handled.

Facility management

Managing facilities is a long-term commitment for a business, whether it’s a city office tower or estates across the country. There is often a myriad of minor details that go into facility management, which is where savings can be made without jeopardising service. The long-term nature of facilities means that it is also vital to ensure savings can be maintained into the future.

Supply chain management

Many aspects go into a product’s creation, with the goods transferring between warehouses and distributors before completing sales. Effective logistics management can go a long way to creating long-term cost efficiencies for businesses. It is also essential to ensure your suppliers and distributors are providing you with good value for money.

Medical services

In healthcare facilities, it is vital that businesses get the high-quality supplies they need. There are often many suppliers in this regard, allowing companies to find good value on their materials while maintaining the high level of service required.

Operational supplies

From chemicals and gases to factory consumables and packaging, operational supplies lie at the heart of any manufacturing business. Some of these products can be hard to source, making it a challenge to reduce expenses. Ensure that you are getting value for money by evaluating your costs against the market while also developing efficient purchasing techniques for long-term benefits.

Personnel services

For many businesses, people are the most important asset. Therefore, it is vital that a company’s workforce is as strong as possible to ensure efficiency long-term. Companies should evaluate their current employment practices to see if a more successful method can be implemented. Effective fleet management can also provide long-term savings.

Telecommunications and technology

All companies rely on telecommunications and IT for the smooth operation of their business. These are often amongst the most competitive contracts available, meaning that cost savings can usually be found. Evaluate your current suppliers to ensure you are getting the best deal possible for your budget. It is also vital that your business is prepared for any technological advancements in the future which could unlock more efficiency savings.