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Quicks Hits to Reduce Costs


The positive economic news is buoying our spirits and causing business leaders to shift their attention back to 2009 goals and year-to-date results.  Shaking off fear and inertia, with few exceptions there is still intense effort needed to reduce expenses while making forward-looking decisions.

 

Here are a few Quick Hits that will yield between 5 and 20% savings:

 

Software: 1) Are you paying for maintenance on out-of-service software or software that will be phased out sometime in the next two years? 2) Have you been conservative when buying seat licenses, avoiding the trap of future needs? 3) Are you paying for maintenance before the software is fully implemented and in production?

 

Mobile Devices: 1) Does your policy limit company link company-paid cell phones appropriately with job needs? 2) Have you requested and audited 100% of invoices once a year to identify unusual costs or inappropriate use? 3) Do you require employees travelling on company business to carry a phone card issued by your land-line carrier who have much lower long distance rates and no roaming charges?

 

Legal Services: 1) Does your policy or are your relationships with Law Firms segregated according to the type of work and risk? Mid-tier firms charge up to 25% less than the large, national firms 2) Do you negotiate fixed professional fees for routine work? 3) Do you negotiate and cap administrative and incidental rates and fees?

 

Administrative Costs: 1) Reprogram all printers for two-sided printing 2) Negotiate deep discounts for frequently used Office Supplies, and a smaller discount for off list items 3) Switch from new to remanufactured toner cartridges

 These simple projects are quick and relatively easy to implement, and will reduce your costs immediately, helping you to achieve this year’s goals. For more ideas, please contact:

Linda Tuck Chapman, Ontala Performance Solutions www.ontala.com  is an expert Advisor in Strategic Sourcing, Outsourcing, Offshoring and Risk Governance. She can be reached at 416-452-4635 or lindatuckchapman@ontala.com



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