The Auditel Franchise explained: What is Strategic Cost Management?
What is Strategic Cost Management? This is one of the most frequently asked questions throughout the franchise recruitment process, so we wanted to explain all in this blog post.
Cost Management within a business is very easy to define; looking at all costs incurred by a business from energy to phone bills and ensuring that they are all as cost efficient as possible. However, ‘Strategic’ Cost Management is far more aligned with the strategic future plans of the business, not just looking at the savings that could be made. For example, if we were looking at the energy spend of a company, it would be easy to find the best energy deal on the market and make a decision purely based on cost. However, a key strategic priority for the business could be to decrease their carbon footprint which means that the decision cannot be made purely on cost.
Alternatively, switching phone providers may save money for the business over a set period of time, but does the new provider offer all of the services required to meet the company’s growth objectives over the same time period?
The difference between Cost Management and Strategic Cost Management is very important for businesses to understand. Simply focusing on costs may hold the business back from achieving their overall targets – this is where Auditel franchisees come in.
Auditel franchisees make a massive impact on their client’s businesses through focusing on their strategic goals. Founded in 1994, Auditel deliver highly effective Strategic Cost Management solutions to organisations throughout the country, across almost all areas of business expenditure. Today Auditel has over 4,000 clients nationwide, supported by a network of over 200 cost management consultants.
An example of Strategic Cost Management in action is Auditel’s work with the restaurant chain Bill’s. Their rapid expansion to 72 sites required a truly strategic approach and Auditel have been helping Bill’s with their expansion plans by providing outsourced facilities, project management and overseeing the installation and upgrade of utilities supplies. These factors are all key to any restaurant business.
“Bill’s has been a success from day one and growth has been fast. We need to ensure that we are able to get new supplies in where needed, or existing supplies upgraded in the most efficient manner possible to make sure that we can meet tight opening deadlines,” explains Louise Neilson, Head of Projects and Development at Bill’s Restaurants.
Louise appreciates the fact that Auditel are able to look at supplies for gas, electricity and water, meaning that when a site opens it has all its essential utilities in place, correctly sized and in contract. Auditel see the project through from beginning to end, including managing third parties, Bill’s have a single point of contact for all enquiries.
“Having Auditel involved has brought real clarity and expertise to our facilities needs and allows us to concentrate on the rest of the development with confidence that when we come to open, everything will be in place and ready to go,” adds Louise.
For Bill’s, simply focusing on Cost Management could have restricted their rapid expansion. For them, the speed and quality of suppliers is essential to their strategic goals and having Auditel operating as their outsourced Strategic Cost Management team they were able to meet their growth plans in addition to having expert advice and knowledge on-hand whenever needed. Our franchisees become an integral part of their client’s businesses to ensure they reach their long-term strategic goals.
Find out more about the Auditel franchise opportunity.