Running costs
positive engagement to such a survey that benefits both the business and individuals.
10. Zero-based spend categories This final point is drastic but if, during your review, you find any spend category that is not fulfilling a key purpose or delivering an outcome, consider stopping it altogether. You will often see budget reductions at difficult times for areas like marketing and training, but just make sure you have considered key or protected areas as well. This list is not an exhaustive list of all
the options – either short-term tactical or longer-term strategic - but is a quick helping guide for what to consider from your procurement function in a post- Covid world.
Advanced cost control If you are already more advanced in your cost reviewing, and really want to scale up your procurement savings and culture, you may want to consider a deeper dive into your P2P (purchase to pay) systems and processes - such as expenses processes - technology (such as unnecessary or downgraded licenses and systems) and
Figure 2. ‘Quick-win’ savings in care
Figure 3. Long-term savings in care
ongoing price tracking due to Covid and Brexit cost volatility in areas such as food, insurance, fleet and energy. When we work with customers, we
find that most organisations are stuck in the ‘basic‘ stage, achieving modest savings through ad-hoc buying, and some occasional strategic buying. Most of these cost savings are not actually realised though, as a lack of process, stakeholder and cultural engagement, and supplier
management exists, meaning costs soon leak out through maverick purchasing or third-party price increases. By adopting some basic principles, you
can get your procurement driven savings to deliver a high return on investment, creating a sustainable environment where your enhanced cost savings are paying for the resources and ensuring savings are sticking to the profit and loss! Finally, and strategically, do not forget
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