Managing your SUPPLY COSTS
How serious is your organisation about delivering COST savings to the bottom line?
Cost management is the process by which organisations control and plan the costs of doing business. Individual business projects regardless of nature and requirement must have cost management plans, and organisations as a whole also integrate cost management into their overall business model. When properly implemented, cost management will translate into reduced costs to products and services, increased value delivered to client and ultimately increased value to the BOTTOM LINE profit.
Many organisations find that there are often have internal issues that do not allow them to take full advantage of managing their costs strategically. For most part organisations DO NOT possess the specialised killed our have the capability to drive and support cost management initiatives.
One of the key often overlooked COST management disciplines is supply cost management. This is where organisations posses the procurement capability to support the business in delivering COST savings within their supply spend categories.
Every organisation will have cost savings opportunities within their SUPPPLY spend, MOST often they have been entitled to the opportunities for years and will continue to be entitled to them in the future, without even be aware that they exist.
SUPPLY COST represents up to 80% of TOTAL costs in some industries, yet many organisations don’t have the resources, expertise and specialised knowledge to get the most out of their spend, and achieve the savings that they are entitled to.
Epago has a SUPPLY COST Savings program which assists our clients streamline their SUPPLY spend and SAVE up to 40% on the SUPPLY spend. The SUPPLY COST MANAGEMENT program works through various phases which assist to identify and deliver of multiple COST savings initiatives via 3 key focal areas of Price, Process and Demand Management. Initiatives are implemented via a phased approach, delivering IMMEDIATE and long term savings.
Epago’s holistic approach to the management of the total cost of a SUPPLY category and its associated supplier stakeholder relationships provides clients with the knowledge, deliverable opportunities and most importantly the process capability to ensure that the strategy and supplier arrangements put in place deliver the maximum benefit and value for your business.
Epago’s SUPPLY COST Savings Program offering
- Assess and identify key cost saving opportunities
- Establish program of work
- Program implementation (phased approach)
- Set out measures and metrics
- Ongoing management
Why choose EPAGO?
Our expert procurement professionals have a deep supply category understanding and keep themselves up to date with predominant market factors. This allows us to have a precise understanding of current price economics. We also have extensive supply relationships and performance process in place to deliver superior supply service fulfilment benefits to our clients.
Epago has flexible pricing models available, which assures our clients best and full value. So confident of the SUPPLY COST savings program we deliver, we even offer a gain share ‘Fee for Savings pricing model’ which assures our clients a return on your investment.
Experience counts!
From our experience we know that substantial savings can be achieved via effective management of indirect spend categories. Our clients can achieve up 40% savings on their indirect spend.
Some examples of potential savings:
- Corporate Travel 27%
- Print Management 32%
- Meetings & Events 29%
- Telecommunications 38%
- Office Supplies 23%
The Procurement Strategy Council(Cost reduction series.) states that ‘Effective management of indirect spend is an under utelised source of economic leverage. Reduction of spend with suppliers carries a multiplier effect straight to bottom line profits.’
Contact us today to find out how we can help you streamline your SUPPLY spend and accelerate COST -reductions immediately.
