Frequently Asked Questions
1. Can you afford ‘Business as Usual’ which does not address your cost management challenges?
If your current financial performance is below expectation, corrective action is essential. Intentions don’t solve problems. If in doubt, consider the the threat of insolvency and opportunity cost of a fire sale of distressed assets.
2. Do we need Cost Management Specialists?
Yes if your cost management challenges remain unresolved. That is, you have failed to improve return on your daily business investment to target levels through corrective action. Cost Management Specialists are change agents focused on moving from agreed performance baselines to meet agreed performance targets.
3. Is cost management just glorified accounting?
No. Cost Management Specialists use a range of tools to deliver higher ROI and profit. Management accounting makes a major contribution to effective cost management as does value management, constraints management, lean six sigma, business process management (BPM), process excellence and digital transformation.
4. Can we afford Cost Management Specialists?
Yes. Cost Management Specialists objective is to deliver ROI in multiples of fees received. Projects are scoped against confirmed baselines. An initial audit identifies ‘low hanging fruit’ and scope to fund the project through savings achieved without reducing quality or creating a negative customer experience.
5. Are Cost Management Specialists fees based on results?
Fees are agreed up front and timed to minimise impact on your cashflow. You decide which CMS recommendations to implement. When all recommendations are implemented, we refund any difference between fees & your cost benefit noting we have never been asked for a refund.
6. Who are Cost Management Specialists clients?
Clients reflect 20+ years’ of projects with major & smaller businesses from diverse industries in every Australian state, Malaysia, New Zealand, Nigeria, PNG, Singapore, Tanzania & Thailand. See our Client List
7. What are the benefits of Cost Management Specialists tendering on our behalf?
You retain complete oversight of the tender process to deliver the benefits of a competitive market by incorporating your needs in an RFT/RFQ/EOI to identify ‘best value’ against predefined evaluation criteria. Benefits include accurate documentation of your needs, increased staff understanding of ‘best practice’ and what is required to achieve better quality, improved service, lower cost, streamlined process, better reporting, reduced waste, performance-based Agreements and a Contract Register with Bring Forward functionality,
8. Will a Competitive Tendering project disrupt our business?
Cost Management Specialists engage key stakeholders, impacted by the quality, service and cost of the service/product being tendered, to accurately reflect What, When, Why, Quality, Volume, Performance Criteria and Timelines in a RFT/RFQ/EOI. Lack of stakeholder engagement can undermine value and increase disruption.
9. What goods and/or services do Cost Management Specialists tender for?
Tenders are for major purchases including but not limited to: labour, energy, equipment, equipment hire, fleet, food, fuel, insurance, laundry, maintenance contracts, managed services, office supplies, precious metals, professional services, rent, software, service contracts, stationery, telecommunications.
10. Will a ‘Whole of Enterprise Project’ disrupt our business?
Disruption to ‘business as usual’ is necessary when performance improvement is essential. Business leaders agree priorities based on current financial performance, improvement needs, workload, and capacity. Key stakeholders’ engagement in a ‘whole of enterprise’ project, in addition to their existing workload, optimises the benefits of the project and challenges key stakeholders to ‘work on’ the business’ not just ‘in the business’.
11. Will a Demand Planning project disrupt our business?
Disruption to ‘business as usual’ is necessary when performance improvement is required. Workforce Planning Project s require key stakeholder’s engagement. The outcome inevitably impact the number & nature of staff & challenges operational silos undermining customer value, ROI & profit.
12. Will a Department/Team Operational Audit disrupt our business?
Disruption to ‘business as usual’ is necessary when performance improvement is required. Cost Management Specialists facilitate discussion on specific business intelligence data to engage key stakeholders and agree As Is. Beyond the Audit, key stakeholders can be engaged to define To Be to improves financial performance including adding value, increasing revenue, minimising waste, reducing error, and managing variance.
13. What is the difference between cost management, cost reduction and expense reduction?
Any fool can reduce cost. Many do with disastrous consequences. Cost Management Specialists target improved financial performance based on customer satisfaction, revenue, throughput, productivity, and quality. Blind expense reduction can become ‘the problem’ as these Case Studies demonstrate.
14. What are the non-financial benefits of your partnership with Cost Management Specialists?
- Objective insight into current challenges
- External ‘change agent’ support to resolve the unresolved and manage the essential change required
- Opportunity Identification – high level (value stream) and low level (process)
- Identifying & resolving unforeseen or hidden risk(s)
- Decision making based on applied current and timely business intelligence
- Motivating increased cross functional collaboration to drive a continuous improvement culture
- Access to a broad knowledge of business tools, case studies and software products
- Reverse Supply Chain measured, managed and reduced
- Contracts Register updated with Bring Forward functionality.