Cost Reduction

Why look at Reducing Costs?

Simply in the current economic climate, whilst the Government is driving down expenditure, cost reduction is essential across all areas of the public sector.  Private sector business also needs to focus on reducing the cost of their operations to stay competitive in today’s market.

 Traditionally in the private sector cost reduction was used as mechanism for increasing profit contributions.  In some areas that is still true, but with the drive to reduce expenditure across the economy, cost reduction is becoming a business imperative.

Our cost reduction service is focused in its approach and can deliver category savings for clients of over 20%. Clients also benefit from improved buying processes, effective negotiation and increased competitiveness.

How we help

Our procurement specialists work with clients to identify what their category spend on goods and services amounts to.  We find that many organisations do not understand the size or complexity of their supply arrangements or what they spend with each supplier.

This analysis provides the scope and extent of potential savings delivery and the portfolio to be managed.

When we understand your business needs and expectations, we utilise our skilled and experienced category managers to negotiate with incumbent suppliers or competitively approach alternative sources.

We will review the value-for-money options available  and present our recommendations.  We will then introduce any new suppliers and monitor performance during the transition to your internal team.

How we are different

We are an independent organisation without commercial ties or liaisons with suppliers, therefore we do not accept commission, agency or introduction fees.  We represent our clients and act solely in their best interests.

We do not look to “sack” incumbent suppliers.  Very often they are retained on improved terms even for clients in the public sector. As we are looking to reduce cost, we listen to suppliers and where practical develop their ideas so most are willing to work with us to reduce the overall cost to clients.

We are not just a “Cost Reduction” consultancy – we can work with you across the business to improve efficiency and operations as well as reduce external costs.  So from a full company review to a category focus we can support your business in the achievement of your aims and objectives to improve competitiveness, increase profit or address budget cuts.

Contact David to further understand how Redcap can deliver savings to your organisation.