Do not let COVID-19 and other distractions prevent you from achieving huge expense reductions.
Todays post is from Ron Southard, CEO at SafeSourcing Inc.
It appears it would be counter intuitive for senior management to ask procurement professionals to explore all contracts in the current environment. There is so much uncertainty relative to the economy, COVID-19, and related internal and external adjustments as well as an upcoming election that may change how we look at everything.
With all of that said, public companies are going to have to continue to report earnings while they plan for an uncertain future. Small businesses while not having to report are equally as focused on keeping the doors open. While the numbers vary as they seem to with everything today, approximately 100,000 businesses have failed forever. Many more will over the next 6 -12 months. Depending on the source you use, nearly 17 million Americans are unemployed. So much to focus on, how to cope?
While the statistics are daunting, all these businesses were buying products and services from the supply chain. As such, it is not surprising that the supply chain companies have lost sales/revenue and are very eager to find new business. They are looking at their existing customers to lock in business, new verticals with similar characteristics to their existing customers to cannibalize from and their existing markets to offer unsolicited proposals at great initial pricing. I am sure there is not a senior leader that has not been told of unsolicited offers for current expense categories at drastic improvements in pricing. So, the market is ripe, but it will not stay that way forever. And here is a caution; Do not accept those initial offers. There is still better pricing available.
At SafeSourcing, we have not laid off anyone since the 1st of the year and have dramatically reduced our expenses on everything. One example is our phone service where we reduced costs by 45.3%. Another is our insurance policies where we reduced costs by 13%. There are many others with significant savings as well.
I have often used the following as a tongue in cheek response to the question I have heard thousands of times. Why should we focus on expense reduction with SafeSourcing? My response is, do you have a dollar bill? Even in todays world most folks do. I ask the questioner to take it out of their purse or wallet while I am taking a $10 bill out of mine. I offer to trade one for one. While many already see my point, no one has ever turned down the exchange. A 10X return? Why would you not do it. Both bills are the same size, color, and government backed. It is the same specification right? So, an easy decision. I then add that when you use SafeSourcing, our ROI is quite often much higher. Your time commitment is minimal, and you receive and equal or better specification or service or both at a lower price! So, Why Not?
The times are hard, headcount may be down, and you have so much to focus on! Let SafeSourcing help you reduce your costs on everything from capital, costs of sales/goods and expense. Your numbers will look better now and in the future and you will not have to use headcount as your best cost management tool. Our average customer savings over the last 18 months are in excess of 24%. Yours could be too!
For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.