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Accountancy and Business Management ConsultantsThe aim of any business is to provide a product or service to a market that will return a profit to the company. The profit can be affected by many variables, such as core product price variance, material availability, competition with in the market, product demand, politics to mention a few. Business Management Consultants help businesses to mitigate the above and put processes in place to stabilise, identify business needs, nurture and grow the business, again the main aim is to generate profit and sustainability. Generating more profit does not always mean more sales, this can done through several routes depending on the business state. Financial Management Change Management Business Rescue, Restructure and Recovery Choice Procurement offer an alternative method with quick results that help increase profits as well as introducing structure and systems to the purchasing process. Increase Profit without Increasing SalesOne area that profit is normally tied up is in operational overheads, this is made up of service or manufacturing costs, labour and support services and products required for the running of the business. The support services and products will be items such as Light bulbs, IT equipment, Telecoms, Energy, Water, Work Wear, Fleet, Office Supplies, etc, known as the non-core spend. This area of spend is where the purchaser knows they require the product but don’t understand the product enough to purchase what they require, they usually purchase what they are sold. This normally comes with a minefield of contracts that are weighed in favour of the seller.
Cost Reduction and Control (The Service) Reducing the non-core spend is not just buying cheaper, its about buying the right product at the right price, controlling the purchase of this product to what is required at the time it is required, paying for this product in a way that suits the business, assigning the cost of the product to a budget at point of purchase to help cash flow, using business specific terms and conditions to protect the company and to purchase on your terms.
The Impact If your clients overhead expense was 40% of their total turnover and we negotiated and implemented the following;
The Result More staff time, more staff satisfaction, less products cluttering up the business and most importantly more profit. To generate the same increase in profit in the short time it takes to do a procurement review you would need to increase sales by at least 13.7% or price by 6.86% to return the same result. Which is the easier route?
The Opportunity Choice Procurement can give your business an extra dimension in the goal to help increase your clients’ profits. We will integrate with your staff and present processes working with your clients reviewing their overhead expenditure. This will give you a dual process to get the result of increased profit. This will also give you more influence on your clients’ cashflow and overheads as well as less administration time with purchase ledger processes. Purchasing like accounting and business management is not just a one off service it is a long term commitment. Your Return Like any service that helps a business increase profit you can charge a fee for the privilege. This fee can be generated in several ways, whether it is a flat monthly fee, time and materials, share of saving or a revenue stream from your clients, every client will have a different value of the service meaning a flexible charging structure is required. Choice procurement is willing to work along side businesses like yours to help your customers increase profit.
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