Frequently Asked Questions
1. Why partner with Cost Management Specialists?
To benefit from proven skills and focused action to achieve financial improvement targets against baselines.
To make more possible through improved cashflow and profit from added value and reduced waste.
Value creation includes, but is not limited to, streamlining flow, throughput matched to demand, increased revenue & revenue velocity, best value through tendering and reduced rework.
Waste reduction includes, but is not limited to, streamlining flow to eliminate non-value-adding activities including overprocessing, defects, overproduction, waiting, and unnecessary movement.
2. What do Cost Management Specialists charge?
First, ask yourself Is continued daily investment in poor financial performance sustainable?
You can afford Cost Management Specialists. Our objective is to deliver ROI multiple times your fees.
Fees, the project scope, performance baselines, and estimated cost/benefit are agreed upfront.
Payment is timed to minimise negative cashflow impact.
3. Are Cost Management Specialists‘ fees based on results?
No. You decide which recommendations to implement. Therefore you determine project results.
We guarantee that your benefits from Cost Management Specialists tendering will exceed your cost.
4. How and where do Cost Management Specialists identify improvement opportunities?
We identify opportunities by:
- listening to key stakeholders
- walking where the real work happens in your workplace
- observing through ‘cost management eyes’
- testing assumptions and validating insights against business intelligence
- calculating the cost/benefit of potential projects.
Cost Management Specialists’ business analysis skills then develop and propose projects to deliver ROI multiple times your investment based on criteria such as cashflow, profit, customer satisfaction, revenue velocity, throughput matched to demand, increased productivity, defined quality and reduced rework.
5. What is the difference between cost management and cost reduction?
Any fool can reduce cost. These Case Studies demonstrate the consequences when a ‘cost reduction solution’ increases your cashflow challenges and adds to your financial performance problems.
6. Is cost management just glorified accounting?
No. Cost Management Specialists are skilled facilitators in creating value and reducing waste. We streamline flow and promote cross-functional collaboration. We use proven performance improvement methodologies including management accounting, value stream management, constraints management, lean six sigma, business process management (BPM), and digital transformation to improve performance.
7. Who are Cost Management Specialists’ clients?
Organisations with an annual turnover of $5m+/year & who have more than 10 staff engaged in multiple processes to deliver customer outcomes.
Benefit from 20+ years of performance improvement experience with major medium and & smaller clients in diverse industries across Australia and in Malaysia, New Zealand, Nigeria, PNG, Singapore, Tanzania & Thailand. See our Client List
8. Why is ‘Business as Usual’ a distraction from improving poor financial performance?
‘Being busy being busy’ and relying on good intentions can create the illusion of progress.
‘Business as usual’ determines performance baselines and improvement needs. When your current financial performance is below expectation or industry standards, focused corrective action is essential.
9. Will a financial performance improvement project disrupt our business?
If improved financial performance is a priority, short-term disruption is essential to improved performance.
Key stakeholders’ engagement in performance improvement, in addition to their existing workload, optimises the benefits. It also challenges stakeholders to invest in future success, rather than focus on the immediate.
Cost Management Specialists facilitate discussion of business intelligence to agree on your current state (As Is) and engage key stakeholders in defining a future state (To Be) that targets financial performance improvement by adding value, increasing revenue, minimising waste, and reducing error.
10. Why use Cost Management Specialists to tender for goods and services?
Our objective is better value against predefined evaluation criteria by optimising competitive market benefits.
That is how & why Cost Management Specialists gaurantee that your benefits will exceed your cost.
We accurately outline What, When, Why, Quality, Volume, Service, Performance Criteria, and Timelines for the tendered service/product in a Request for Tender (RFT) which is issued to qualified suppliers.
Post tender, we work with chosen suppliers to streamline supply with enhanced reporting and reduced waste to achieve better quality, and improved service, at a lower cost under performance-based Agreements.
11. What goods and/or services do Cost Management Specialists tender for?
Tenders are for major purchases including, but not limited to labour, energy, equipment purchase and hire, fleet, food, fuel, insurance, laundry, maintenance contracts, managed services, office supplies, precious metals, professional services, rent, software, service contracts, stationery, telecommunications.
12. What are the non-financial benefits of a Cost Management Specialists partnership?
- Objective insight into financial challenges without any conflict of interest
- The positive energy of a catalyst for change with a performance improvement focus
- Confidentiality, probity, and transparency in improving your financial performance
- Identification of high level (value stream) & low level (process) opportunities
- Recommendations supported by accurate, and timely business intelligence
- Skilled motivators of cross-functional collaboration in managing change
- Consideration of qualitative issues e.g., Governance, Contracts Register, Reverse Supply Chain