Sweat the Small Stuff: It Adds Up
A recent SupplyChainBrain article reported on a study by Procurian which found that tighter handling of indirect spending in areas such as IT, supply chain management, marketing and energy could save big businesses millions when managed with a continuous and holistic approach.
According to Procurian, here are a few smaller and less obvious issues that can have a significant effect on cost:
- Properly managing energy processes on an ongoing basis could cut 15 -40 percent in annual energy costs.
- With the Supreme Court’s ruling and President Obama’s reelection, we now know that the Affordable Care Act isn’t going anywhere. Determine which mandates affect you and be proactive in your response to avoid any penalties.
- Consider “reshoring:” High logistics costs and labor inflation have some companies rethinking the trend of sending manufacturing jobs overseas.
- Seek out expert knowledge in temporary and full-time labor sourcing to help devise a recruitment strategy before labor becomes scarce: We have already seen shortages in the trucking industry; the time to act is now.
- Labor disputes could close shipping ports from Houston to Maine by the end of the year. Plan for increased logistics cost and subsequent effects on West Coast logistics operations, as well as the national rail network.
Continuous management of indirect spending and employing cross-market intelligences can ensure all potential savings are realized – even those that may be under the radar. There will always be unforeseen costs, but companies need to have the right systems and software in place to remain flexible and nimble.
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