Your business can’t operate efficiently if you don’t know the challenges. Below we look at 3 expense management challenges most CFO’s didn’t know existed. Most expense management problems are the result of lack of experience and knowledge. The kind of experience and knowledge that only someone who actually worked for the vendors your paying every month.
Poor Expense Visibility (Missed Promos)
Do you know the latest promotions offered by your telecom and waste vendors? Most businesses don’t know how to obtain this information or a clear idea on everything available. It’s very difficult to cut spending without an expert who has been dealing with Telecom & Waste vendors day in and day out. Many times, we identify cost savings promotions that the sales & customers service reps are even clued into.
A recent promotion discovered by our team resulted in a 30% reduction. If this was found with one of your vendors how much would this have saved your company over the next 5 years? How many more of these promotions will you miss? Missing out on promotions when you your competitors aren’t could make it much more expensive to stay competitive.
Human errors are expensive. Not to mention outright fraud that can happen at the hands of an employee or your vendor sales rep. If something occurs as the result of a genuine mistake as opposed to fraud, it doesn’t make it less time-consuming to correct. Having a third party to go through your invoices and follow up on billing errors ensures you eliminate timely and costly errors.
Here is an example of recent billing errors identified one clients bill.
Incorrect international features, sales reps slamming clients bills with unsuspecting features and allowing employees to add features to their account resulted in one company spending an additional $765.13 a month. If this wasn’t fixed this could cost the client $45,907 over 5 years!
Inefficient Processes (Optimization)
Going through your invoices line-by-line or calling vendors every month to see if there are better options available, can be futile and very costly. Spending time can yield some results but is it worth it? Having an industry expert who used to work for the very vendors you are paying is a sure way to make an inefficient process efficient.
Here is an example from one of our clients showing how much could have been lost.
By optimizing the clients Verizon bill, they will save $62,000 annually. Over the next 5 years this will be $310,065! That’s assuming we never find a better way to optimize in the future, which to date has never happened.
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