Your one minute cost management check
I thought that I would provide you with a short checklist of cost management issues that may help to give you food for thought.
Remember, effective cost management is not just about bottom line savings.
The time taken by your staff to cover some of these other areas when they could and should be doing what they are paid for, making your business profitable, is an often overlooked aspect of the total cost of purchase.
Ten key questions to ask:
1. Do you have someone who is responsible for reviewing the costs of your overheads each month? How much time does it take them? Do you know the hidden internal costs of managing your overheads?
2. Do you regularly check that you are getting best value from your suppliers? Are you on the best tariff for your requirements? Do you receive the discounts that you are entitled to?
3. Do you check that your bills are correct; do you check for overcharges and anomalies of usage?
4. Do you know the key renewal dates/notice periods for your utility and telecommunications suppliers?
5. Do you monitor how your staff use telecommunications and other business services?
6. Do you control the purchasing of business stationery and other consumables and services?
7. Have you looked at the opportunities for becoming more energy efficient?
8. Do you know your obligations for the correct disposal of waste?
9. Do you keep up with technical developments and changes in the market?
10. Do you tender alternative suppliers when your contracts are due for renewal?
If you answer ‘No’ to these questions then you could be paying more for your business overheads than you should.