These days more companies are saying that they are focused on expenses. Is this just more talking points?
These days more companies are saying that they are focused on expenses, but what exactly does that mean?
Today’s post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing.
At SafeSourcing, we’re always focused on expenses. Helping our customers manage their expenses and reduce costs is in our DNA. It’s fair to say that nearly every organization we work with also has some degree of their focus placed on expense management too. The degree to which this is true varies, but expenses are usually an area of at least some focus.
These days, the level of focus on expense management and reduction seems to be higher. At least, that’s what we are hearing. We hear several times a day from many organizations that they are really focused on expenses right now. But what does that mean and what are you actually doing about it?
There are certainly many ways that one might decide tackle expense reduction. There are some very severe measures like furloughs and layoffs that, while effective in reducing expenses, have some other wide-reaching negative side effects on your business. There are some more temporary measures that can be taken such as freezing spending in certain areas. This can also be effective in the near-term, but this too has negative consequences.
In these times, measures such as these are being considered and implemented regularly. We see it in the news and we hear it in conversation.
There is another way to manage and reduce expenses, of course. Our readers already know that SafeSourcing reduces costs for our customers while maintaining current specifications and service levels and the cost reductions are not temporary. On average, we deliver over 24% cost reduction across all spend categories. That means that if you work with SafeSourcing to reduce your expenses, the reduction scales as you go. If you source $100,000 using our services, your new expense may be around $75,000 after working with us. If you source $10,000,000 using our services, your new expenses may be around $7,500,000.
Plus, working with SafeSourcing also means you get to hand off the hard work of finding vendors and negotiating new rates which can be very time consuming, especially if you’ve already reduced headcount.
I thought it was a good time to share a reminder that there are options if expense reduction is your new priority.
What does “reducing expenses” mean to you?