Nearly everyone who reads this article will agree that a savings in direct and indirect costs of 10-15% would be a real benefit to their profitability. 10-15% is the average savings that Rowe Advisory has been able to deliver to businesses we work with.
Why then do many companies not make the effort to save this money when it is out there to be taken?
For some it’s simply because the effort required to chase the savings is too great. For others it’s because they can’t afford the permanent overheads to undertake the work. Businesses are finding their teams often lack the knowledge or motivation to chase the savings like it is their own money.
The possibility of upsetting relationships that are years old seems too confronting for many. Often managers just don’t want to admit they don’t know where to start, so it’s easier to do nothing. Would people react the same way if this was an increase to their bottom line by an additional 10-15%?
Whatever the reason companies don’t chase savings in their supply chain, often the hardest moment is making the decision to start. It can be difficult to admit that you need help to get the job done.
Rowe Advisory works with large and small companies, from global miners to family owned food businesses. We work alongside and within their teams to help companies realise the savings that are possible. These companies are all currently enjoying the benefits of reduction in their direct and indirect cost, an upskilled workforce and better processes and procedures around procurement.
Whether it’s helping you to train your teams and build capability, identifying the key spend areas to target, running competitive tenders or negotiations process, working with your teams to realise savings or simply developing a plan of where to start…. this is our bread and butter!
In a world where cost of goods and margins can now determine whether you win or even keep your current business, reducing and having control over your current spend is paramount. Being brave enough to allow a fresh set of eyes to look at your business takes courage.
So, would a 10-15% saving in your supply chain costs make a difference to your business?
If the answer is yes, then contact Rowe Advisory today to start the conversation around cost savings in your business.
We simply start with a pilot project to show you what can be achieved across your business.
Rowe Advisory is a leading consulting business in Australia. We are strategically placed to be able to lead, manage or advise on preparing your business for Industry 4.0.
Chief Executive Officer, Jody Rowe, at jody@roweadvisory.com.au
Managing Consultant (Melbourne Office) Lucy Coward, at lucy@roweadvisory.com.au
Managing Consultant (Adelaide Office) Richard Peasgood, at richard.p@roweadvisory.co.au
Managing Consultant (Brisbane Office), Bryan Schriiffer, at bryan@roweadvisory.com.au