Frequently Asked Questions
Why do we need Cost Management Specialists?
Time proves that good intentions don’t exploit opportunities or solve problems.
Cost Management Specialists bring proven tools and techniques to resolve the unresolved and improve the return on your daily business investment using applied business intelligence. Projects are scoped against confirmed baselines and completed in an agreed time frame.
Can we afford to Cost Management Specialists?
Yes. Cost Management Specialists objective is to pay for ourselves in sustainable client benefits. If current financial performance is below expectation or unsustainable, you need a change agent to increase your ROI.
Are Cost Management Specialists fees based on results?
Fees are agreed on upfront in a Fee Schedule which minimises the short term cashflow impact. You decide which recommendations to implement.
When Cost Management Specialists recommendations are implemented, we refund any difference between the fees paid and the cost-benefit you receive. In 20+ years, CMS has never needed to provide a refund.
Who are Cost Management Specialists clients?
Cost Management Specialists Client List reflects 20+ years’ of cost management projects and executive education in every Australian state, Malaysia, New Zealand, Nigeria, Papua New Guinea, Singapore, Tanzania, and Thailand. Clients are from diverse industries with turnover <$50m/annum.
Why tender for goods and services?
Clients focussed ‘in the business’ don’t always receive the benefit of positive market change. Cost Management Specialists benchmark ‘best practice’ against the current practice to incorporate your needs in a tender document. Incumbents are invited to tender noting that a change of supplier is not mandatory.
What are the benefits of tendering?
Cost Management Specialists repeatedly prove that tendering increase value through a better understanding of supply needs, increased appreciation of ‘best practice’, performance-based Agreements, better quality, improved service, lower cost, streamlined process, clearer reporting, reduced waste, inventory par levels, controlled reverse supply chain, a current Contracts Register with Bring Forward functionality.
What goods and/or services do Cost Management Specialists tender for?
Tenders are for major purchases >$50,000/annum including: labour, energy, equipment, equipment hire, ERPs, fleet, food, fuel, insurance, laundry, maintenance contracts, managed services, office equipment & supplies, precious metals, professional services, rent, software, service contracts, stationery, telecommunications, travel.
Will a ‘Whole of Enterprise Project’ disrupt our business?
Business leaders need to agree on priorities based on performance improvement needs, workload, and capacity. Engagement in a ‘whole of enterprise’ project, in addition to key stakeholders existing workload, is vital to optimising the benefits from ‘working on’ not just ‘in the business’.
Will a Workforce Planning project disrupt our business?
Business leaders need to agree on priorities based on current performance, workload, and capacity. Workforce Planning inevitably impacts the number and nature of staff and challenges operational silos which undermine customer value and reduce ROI. Workforce Planning Projects should be completed, with key stakeholder’s engagement, as soon as practicable.
Will a Department/Team Operational Audit disrupt our business?
Business leaders need to agree on priorities based on the acceptability of current performance, workload, and capacity. Projects within the value stream use business intelligence to assist key stakeholders agree As Is and define To Be to minimise waste, reduce error, and manage variance.
Will a Competitive Tendering project disrupt our business?
Tendering engages key stakeholders, impacted by the quality, service and cost of the service/product being tendered, in defining their needs. Disruption can be minimised by a Tender document which accurately reflects, what, when, why, performance criteria and timelines.
What is the difference between cost management, cost reduction and expense reduction?
Any fool can reduce cost. Cost Management Specialists target short and long term return beyond just cost including revenue, return, throughput, productivity, quality, and waste. The Victoria Bitter and Boeing case studies highlight the consequences of blind cost reduction or expense reduction when ‘the solution’ becomes the new problem (cashflow, profitability, inventory, market share).
What are the non-financial benefits of your partnership with Cost Management Specialists?
- Access to a partner skilled in delivering measurable financial performance improvement
- Insight from an objective review of As-Is to highlight hidden opportunities, and threats
- Identification of high level (value stream) and low level (process) opportunities
- External support to resolve the unresolved then implement and manage change
- A shift to decision making based on applied business intelligence
- Improved cross-functional collaboration focused on a continuous improvement culture