Consultants who offer advice for how to decrease costs must be willing to monitor their clients over an extended period to actually deliver on their promises.
Too often in business, a vendor or consultant will offer a bandaid to a solution before saying “so long, and thanks for all the cash!” and then leaving forever. They are not sure if they provided a full solution to the problem. They also did not make themselves available to ensure that new problems do not arise as the business grows.
Understanding these issues, Freedom Profit Recovery insists on maintaining engagement with our clients over the long term. One of the most effective ways we do this is to deliver quarterly reports to our clients. These reports outline their expenses and savings along with new recommendations for how to decrease costs.
Here are just some of the items such a report typically includes:
We want to assure our clients that the changes they made per our recommendations are continuing to save them money. The Value Update report provides a comprehensive overview of their total savings for the quarter. This report includes a visualized graph of their metered expenses, such as energy consumption or telecommunications charges. Reading this report, clients can quickly detect a drop in costs along with a concurrent rise in savings over the period.
We also provide overviews of other areas, such as replacement asset savings. These reports calculate current costs of capital we recommended for procurement like new printing equipment or networking devices and weighs them against the projected costs of retaining the existing assets. Clients can see that their investment paid off in addition to noting the continued expenses they would have incurred if they attempted to hang on to the legacy asset.
Another section of the report concerns Cost-Avoidance. These savings are based on projected expenses before making recommended changes, such as switching service providers, using IT cost reduction strategies, or moving to an outsourced IT contract. By considering the opportunity costs of not implementing changes versus the known savings of making them, clients can see that their efforts resulted in measurable profit recovery throughout the period.
Strategic Updates for How to Decrease Costs
In addition to an overview of current expenses and savings, Freedom Profit Recovery evaluates the choices made in light of the way your business has grown or changed over the period. For instance, if your offices expanded to a new territory since the engagement period, we may need to help you reevaluate your service providers or current document output solutions.
These recommendations represent our ongoing commitment to helping our clients cut costs in business in the long run. We absolutely refuse to leave you twisting in the wind. Instead, we revisit our earlier decisions, measure how effective they were and use them as a benchmark for continuing changes that help maintain cost savings and profitability.
Learn more about how we help your business become lean and efficient by reading our cost savings consultancy services page.