In times of economic hardship, “saving” is the magic word and is a focal point for many organizations. Nevertheless, the low-hanging fruit often lingers for a long time. We see that many opportunities for immediate cost savings are overlooked. The advantage of cost savings is that they contribute directly and fully to the bottom line. Even when you are facing a decline in sales, you can increase your profits precisely by cutting costs. We see many organizations dealing with profit margins that are under pressure and have no insight into spending patterns and savings potential. At the same time, they want to achieve as many savings as possible in a short period of time and increase profits. But how do you tackle this as effectively as possible?
Supply Value’s no-cure no-pay cost savings program can help. We identify the savings potential, after which we can realize the savings in a very short time. We use our own Savings for Value method to determine the most appropriate strategy for achieving cost savings in each specific situation. In this way, Supply Value guarantees sustainable results in the short term.
How do we realize cost savings for you?
The following steps are used to achieve short-term savings:
Supply Value only charges costs if pre-agreed savings are actually realized. This means that even when there is “No-Cure”, for example, no costs will be charged to you.
Realizing cost savings in three phases
To realize cost savings, we use three savings phases. To determine which savings belong to which phase, we map the product/service complexity in the organization and determine the offer in the market. This is shown visually in the figure below. Supply Value distinguishes between the following three phases:
- Phase 1 (1 to 3 months): These involve homogeneous and simplistic products and services within the organization. There is ample supply in the market. Within this category, relatively quick
savings can be achieved relatively quickly. - Phase 2 (3 to 5 months): These involve the more risky and sophisticated products and services within the organization. There is some variation in requirements, with sufficient supply in the market.
- Phase 3 (> 5 months): In the final phase we start working on products and services with the most complexity within the organization. Where there are specific requirements and limited supply in the market.
Realization of cost savings
With our approach, we ensure that savings are realized with the right strategy. We identify the savings potential and after agreement and approval, we get to work realizing cost savings with a team of experienced consultants. The consultants do this with a focus on achieving high-quality and sustainable results. Because cost savings contribute directly and fully to the bottom line, this will ensure a visible impact in the short term. In addition, the financial risk for you is limited due to the no-cure no-pay principle.
Would you like to realize cost savings within your organization and receive more information? Then contact us or download the insight below.
