In a literary review in 2009, the University of Salford stated: ‘An attempt to improve traditional cost management started in 1965… However, companies have been slow to implement new tools… There is broad agreement that current cost systems are not providing enough information.’
To put this into context, a recent survey by Management Today, sponsored by Auditel, the UK and Ireland’s leader in strategic cost management, found that 60% of CEO’s now champion cost management. It is on the boardroom agenda of 82% of respondents. However only 30% of survey respondents described the cost management measures in their organisations to be very strategic. According to a KPMG survey, 95% of cost reductions achieved during the recession are expected to return in the short term. This equates to more than £90bn of costs across UK firms.
Many respondents reported that lack of understanding is their biggest obstacle in cost management. A similar proportion admit that organisational politics hampers efforts to bring costs under better control. Close to one in five point the finger at unrealistic goals as being the biggest barrier. A third of respondents said that they would seek the advice of a specialist consultant when considering more strategic cost management.
This year, Auditel celebrated its twentieth birthday. Over the last 20 years, Auditel has supported thousands of clients, from household brands, through to smaller and medium sized organisations. Across the public, private and not for profit sectors and in virtually every industry sector, Auditel consultants have offered cost management solutions which have led to hundreds of millions of pounds worth of savings. As Ron Yellon, Auditel reports: “We have made huge refinements in the science of effective cost management and have overcome many of the professional shortcomings of past years, mentioned in the University of Salford review of 2009.”
Over these twenty years, we have transformed ourselves from a licenced Utility Bill Auditor to a network of over 200 highly-skilled cost management specialists offering a full service right across the ledger. Additionally carefully selected strategic partners which we have tried and trust bring specialist expertise in areas as diverse as confidential independent Insurance audits, to Travel expenditure management through e-markets, to independent evaluation of Merchant Card services, and Fuel Cards and many, many more – over 100 business costs, treated holistically. Our strategic cost management relies on the continuous development of business systems and analytical tools to provide and maintain sustainable profit improvement. Our proprietary Total Cost of Purchase® approach ensures that costs, once taken out, do not simply creep back in.
You can benefit t
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Join our growing base of more than 3,700 clients across the UK and Ireland and enjoy the tangible benefits and peace of mind that Auditel’s highly effective cost management services can deliver. A business healthcheck is available for any organisation wanting to ensure that their ship is watertight. With help, you can have a strategic management programme developed and being implemented before the end of January. Now isn’t that a resolution worth making?