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The Bottom Line

 
Corporate Cost Reduction
April 2014

There's More to Expense Reduction Than You Think

imageExpense reduction is a complex exercise in the area of strategic thinking. Although it sometimes feels like a straightforward activity that involves beating down a supplier for better prices, it is much more complicated than that. Consider the well-known fact that nothing is free in this world. If you beat down a supplier on price, he is not simply going to hand you the discount without some reduction in service. For example, maybe he won’t rush to get to your orders next time around. After all, he’s not making much money off of your business anyway and when other more profitable business is pending, you get moved to the bottom of the pile. And let’s face it, you might find yourself doing the same to one of your own clients in a similar situation. » Read More

About Us

In today's competitive business environment, success is continually measured by bottom-line results.  Beginning in 1993, CCR has used a proven system for expense reduction that has been directly responsibile for generating significant cost savings for clients in many industries.

We generally target indirect and consumable expense categories. We sometimes look at our client's direct spend and utilize technologies such as reverse auctions.  Our strategy is to consolidate the number of suppliers, leverage the spend, negotiate better terms with our client's existing suppliers, and/or recommend a proven alternative supplier.  Our process is effective and we do all the work!

Regardless of the size of your organization, savings can almost always be generated.  Best of all, our services are contigency based.  No savings, no fee! 

To learn more about CCR, click here or contact Vic Ronder at consulting@ercinc.com

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Procurement to Focus on Influence and Innovation

imageProcurement leaders are expanding their priorities for 2014, moving beyond a historic emphasis on reducing purchase costs and adding focus on expanding and deepening the scope of spend influence as well as supporting supplier-led product innovation, according to 2014 Procurement Key Issues research from The Hackett Group, Inc.

The Hackett Group’s research reveals a major change in procurement’s priorities from last year, when cost reduction/avoidance was their number one concern. For 2014, the highest-ranked issue is expanding the scope of procurement’s spend influence. Over three quarters of the executives placed this first in their priority ranking. Tapping into supplier innovation is the second-highest priority and a focus for 69 percent of the companies in the study. Prioritization levels for both of these issues increased significantly from 2013. » Read More

4 Ways a Small Biz Can Scale to Profitability

imageDownfalls like not being a profitable venture, startups shutting their doors or even bankruptcy are often caused by a lack of knowledge or a willing ignorance amongst small-business owners.

“If the owners really knew what they were doing wrong, they might have been able to fix the problem,” entrepreneur and business speaker Jay Goltz told The New York Times. “Often, it’s simply a matter of denial or of not knowing what you don’t know.”

Don’t fall into the trap. Armed with the following knowledge and know-how, you have a fighting chance of making it as a profitable business that continues to scale for years to come. » Read More

Is Your Budget Process Stuck on Last Year's Numbers?

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Remember your last budget meeting? If you’re like many CFOs, it was a long, exhausting process that was not particularly effective. As the presenters showed you their plans, you probably challenged every number and explored every assumption. In the end, you may have raised their targets a little, but if you’re honest, you have to admit that each unit’s final budget for next year looked a lot like the one its managers proposed at the beginning of the budget process — which in turn wasn’t much different from the latest forecast for this year or actual performance for the previous year.

We hear variations of this story time and again at companies across industries and geographies, and executives wonder why the process unfolds like this and what they could change about it. The short answer, in many cases, is that you’ve been anchored. Anchoring is a well-known psychological bias whereby one piece of information sticks in your mind and influences your interpretation of subsequent information, even if you’re unaware of it. In the case of budgeting, getting stuck in the same numbers from year to year is almost unavoidable. But there are ways. » Read More

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Vic Ronder
Corporate Cost Reduction
27902 Meadow Drive, Suite 130
Evergreen, CO 80439
Consultation: (877) 255-2511 | Direct: (303) 674-2511
CCR Website  |  consulting@ercinc.com

 

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