Cost Management

Strategic Cost Management

Pioneers of Strategic Cost Management

Auditel are pioneers of a brand of strategic cost management that is designed to boost efficiency, reduce waste and deliver sustainable profit improvement.

Initially set up in 1994 to help organisations navigate the maze of tariffs and service offerings that had sprung up after the utilities’ markets were deregulated, our Consultants now provide strategic cost management services to over 3,400 large and medium-sized organisations across the UK and Ireland in more than 100 areas of business expenditure.

What makes us successful?

We have made it our business to take on the best people, develop the best tools, compile the best knowledge base and deliver a game-changing cost management process: Total Cost of Purchase®.

Strategic cost management vs cost reduction

Simple cost reduction exercises that focus on finding the cheapest prices are only effective in the short term. They tend to be one-off projects that use a mechanical price-driven approach that squeezes suppliers and is often adversarial. A recent report from KPMG suggests that 95% of in-house cost reduction exercises ended in failure with costs soon creeping back in.

On the other hand, strategic cost management, as the name implies, is designed to be in step with an organisation’s strategy. It is holistic and delivers sustainable solutions that are the best possible match for a client’s business needs now and into the future. Many organisations (65% in a recent survey*) now recognise that, carried out by experts, it can accelerate performance, improve efficiency and gain competitive advantage.

The benefits of strategic cost management over cost reduction

  • Strategic, long-term and sustainable
  • Holistic
  • Dynamic, informed decision-making
  • Value-driven
  • Nurtures client and supplier relationships
  • Consultative and advisory

Better prepared, better equipped, better supported

Working on a flexible fee structure and with the vast knowledge base of the network at their disposal, you will be exceptionally well-equipped to audit the full range of a company’s expenditure – however large or small.

A win-win approach

Ongoing training and support will ensure that you keep in step with the latest technological advances and can continue to provide the best possible advice and recommendations.

Auditel’s in-depth and detailed analysis can reveal very significant savings, both retrospectively and into the future.

Good news for the client and good news for you, the Auditel consultant.

How does the TCOP® business model work?

tcop-logo3The success of Auditel’s TCoP® business model is based on the synergy of two potent elements: a network of specially trained, highly skilled cost management consultants and the Auditel Information System – a vast database of every project that we have ever worked on, packed with specialist industry knowledge and experience. This powerful combination equips us perfectly to tackle specific cost and purchase management issues holistically and, being independent, allows us to analyse overheads, find suitable suppliers, assess tenders and implement changes that reflect the best possible solutions for each individual client.

Our Total Cost of Purchase® approach includes:

  • retrospective auditing
  • preparing initial benchmarks
  • implementing our recommendations
  • invoice-checking
  • troubleshooting
  • all of which would otherwise be hidden costs of purchase carried by our clients.

By outsourcing the management of business costs to Auditel, however, all these costs are eliminated and covered by the self-funding contingency fee. So, whether the economy is booming or in recession, Auditel consultants provide a very attractive, financially risk-free service which saves clients both money and valuable time.