COST AND PURCHASE MANAGEMENT Total Cost of Purchase

The cost and purchase
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Cost Management

Auditel was a founding member of the Utilities Intermediaries Association in 2006.

Managing the real cost
of your business overheads

The real cost of your essential business overheads is much higher than the price that appears on your bill. The Auditel model differs from traditional cost analysis or expense reduction consultancy because it takes into account all the costs - both direct and indirect - associated with making effective cost management decisions. Because we have decades of experience, expertise and knowledge, we can focus on ensuring your business overheads are under control while you focus on your core business activities.

Self-funding overhead expenditure reviews

Because you want us to lower the cost of doing business, we won't add to the financial burden of your overheads by charging any upfront payments: our fee is based solely on a performance- driven, 50:50 share of the actual savings you enjoy as a result of our advice. Put simply, if we can't show you that you've paid less as a result of our service, you won't pay us anything. By outsourcing an Auditel consultant, you will benefit from having an additional, self-funding specialist on your management team without incurring any of the usual costs associated with in-house resources.

Direct cost of business overheads

This is, basically, the price your supplier charges you for the products or services you use. But, how do you know that this price is fair or reasonable? How do you know if you are being overcharged or there are historical billing errors you could reclaim? How do you know if there are more appropriate pricing packages you could be on? Are you taking advantage of all the discounts you are entitled to?

Indirect cost of your business overheads

There are hundreds of energy and communications companies and a myriad stationery suppliers, premises and finance related services. When you factor in the plethora of different tariffs and service packages these companies offer, the permutations and combinations are almost endless. So, unless you're an expert or have previous experience, where do you start looking for opportunities to reduce the cost of your overheads? Researching the marketplace to find suppliers who will meet your specific needs is a job in itself. Once you've whittled the field down, the process of tendering your supply and assessing the responses will take up even more time. Then you have the task of implementing your final choice and dealing with all the issues that this might throw up.

The benefits of outsourced purchasing advice

In many organisations, the task of managing essential business overheads and making important procurement decisions falls to admin or accounts staff whose core competencies lie elsewhere. But, by taking staff away from your core business, you compromise their productivity - a cost that is usually overlooked. What's more, every month that passes without carrying out a detailed cost management review you will be paying more than you need to for your overheads and could be paying for services you don't actually need. But this isn't the end of it. Markets, technology, legislation and the needs of your organisation change all the time, so any decision you make today is likely be out of date in a few months and you will have to start the process all over again. In the meantime, who checks your bills for accuracy? Who deals with overcharges and errors? Who sorts out problems with service delivery or interruptions in supply? Who looks for and deals with anomalies in your usage patterns?

By outsourcing an Auditel consultant, however, you will have access to an additional management resource, uniquely positioned to address all of these issues while you and your staff focus on your core business. What's more, our contingency fee model means we are only paid for the savings we actually realise and can prove you have made: no upfront investment, no resources tied up in a project waiting for results, no unexpected hidden charges.