generic educational seminar template
TRANSCRIPT
Total Cost of Purchase Management vs Cost Cutting
What’s the difference and how to choose?
Options
• Status quo• Internal• External
Status quo
• Not a viable option• “Beware of small expenses: a small leak will sink a
great ship.” Benjamin Franklin
Status quo
• Example – rolling electricity contracts• Example – security guard’s £8,000 ‘bonus’• Communications spend trebled in last 20 years
Internal resources
• Who – are they qualified to do it?• What is the cost of this internal resource? • What else could they be doing?• Will it just come down to price/salesmanship?• What resources are available to them?*
External consultancy
• What questions should you ask?– Are they independent?– Management or tariff swapping? – Implementation or just recommendation?– Continual monitoring? – Price or usage? For example…
How are they paid?
• Commission• Upfront fees• Contingency fees
– Projected savings– Actual savings
Will they…?
• Conduct a thorough audit
• Look for and rectify historical billing errors
• Profile your expenditure
• Find best value for your specific needs and requirements
• Manage implementation
• Provide ongoing monitoring and ‘troubleshooting’
• Be a trusted advisor
In other words…
…will they manage your costs or just cut them?